2. MAN POWER PLANNING
The banks have to suitably realign their
existing human resources from surplus to
deficit pockets and readjust staffing pattern
in a computerized environment. Surplus staff
from very large branches which are now
computerized, need to be relocated or
assigned newer jobs such as marketing etc.
Mobility of staff has to be negotiated with
employees' organizations as a measure to
improve organizational efficiency and
improve productivity.
3. MAN POWER PLANNING
Manpower Management is really a serious threat for PS
Banks. New appointees are joining and resigning. Every PS
bank is facing shortage of clerical staff. Over-burdened
under-staffed Branch cannot give better customer service.
Realignment can be done for existing staff only but it
involves long distance transfers. That leads to frustration
and decreasing effect on productivity and customer
service.
4. MAN POWER PLANNING
Today's fast changing world its the largest challenge for
public sector banks to train, retrain and motivate their
highly demotivated man power.
5. CUSTOMER SERVICE
Public sector banks have to teach their employees the
correct way to behave with the customers. Most of the
bank people treat customers as worthless. If the service
and customer relation in public sector banks improves,
then no reason why anyone would like to go to private
banks.
6. TALENT MANAGEMENT
Banks have an excellent pool of competent personnel in
all the cadres. Such personnel need to be identified,
nurtured and motivated through a systematic
organizational plan to enable them to accept challenging
roles early in the career. Suitable changes in the
promotion policies should take care of aspirations of such
extra ordinary and talented manpower.
7. TALENT MANAGEMENT
Banks will have to pay increasing attention to education
and training including sponsorship of identified persons to
MBA programmes, Phd programmes and other long
duration programmes in technology and financial
management to develop a wider managerial pool of
competent people who can be developed fast to play the
role of modern banker in ever difficult and turbulent
times.
8. TALENT MANAGEMENT
Banks should think of paying salaries based on
performances and it should be left to individual banks
rather settlements at industry level to retain the talented
lot.
9. NON PERFORMING ASSET
NPA is one of the major challenges of public sector banks
in India. NPA is short form of “Non Performing Asset”. The
dreaded NPA rule says simply this: when interest or other
due to a bank remains unpaid for more than 90 days, the
entire bank loan automatically turns into a non
performing asset. The recovery of loan has always been
problem for banks and financial institution. The
magnitude of NPAs in banks and financial institutions is
over Rs.1,50,000 crores. Main reason for NPAs is because
of giving loans to people without proper check of their
credit histories. In order to avoid NPAs banks should
provide loans to creditworhty persons & industries after
seeing their creditworthiness.
10. NON PERFORMING ASSET
SARFAESI Act has given stronger teeth to Banks. NPA
recovery has become easier in case of loans fully secured
by collateral securities. But Big business-house NPAs are
sheltered directly or indirectly by Government. Courts
also take years together to decide a case. High mounting
NPAs are direct attack on the Profitability and Capital.
11. LAW AND ORDER
If the law makers (politicians) allow the law & order (
police) to function, there will be no corruption, as is
evident in USA, and other foreign countries.
12. EMPLOYEE TRAINING
In public sectors banks, the majority employees do not
have clear conception regarding operations and function
systems of the bank. It’s the main area required to be
emphasized which ultimately served vast pool of
consumers.
13. YOUNG VS. OLD BANKS
Today pvt. banks seem to be the biggest threat for PS
banks. PS banks lacking on CRM (cust. relation mgt)
techniques. The "MAY I HELP YOU" syndrome hardly seen
around. Average employee age almost double of what
most of the young pvt. banks do have. The "chalta hai"
attitude. The complacence creeping due to lack of
adequate competitive edge. Battling old practices not
commensurable with today's customer having variety of
choices to make. Just few to name. Principally, a battle
between OLD PS Banks Vs YOUNG PVT BANKS.
14. EMPLOYEE TRAINING AND
MOTIVATION
Employees need training for new products. Banks are introducing several
new products but not providing adequate knowledge among their staff. This
has resulted unsatisfactory services. Bank can not run only with good
behavior of their staff but they should be well trained to resolve the
problems of the customers. Banks have opened too many service centers(
Branches) but these centers are not equipped with trained mechanics(Staff)
therefore there is dilution in customer services. The Banks have not taken up
this issue seriously but recruiting staff to complete the numbers ( Heads) and
branches are facing various problem and pressures from all corners.
Motivation is also limited to few staff members and majority of staff is
demotivated. There are different Heads for each work at HO but at branch
one Head deals with all situations- is it possible that one person will know
each and every thing related to banking? Consultants in the banking industry
have played a bad role and this may be detrimental to the interest of the
banks. Bank should seek consultancy teams from their own staff members
who are well trained and experienced instead of employing consultants from
outside and paying heavy fees.
15. DEALING GENUINE CUSTOMERS
The banks services are misused by the
influenced/affluent. The banks should service the
genuine/needy customers , instead of the
influenced/affluent.
16. FINANCE
Many PS banks are not having sufficient funds to generate
growth. That is why the Government of India has allotted
capital in the current budget for allotting to these banks
so that they can grow.
17. TRADE UNIONS
INDIAN BANKING SYSTEM HAS SO MANY PLUS POINTS
BUT SOMETIMES TRADE UNION ACTIVISM TRYING TO
PARALYSE THE ENTIRE ECONOMY IN THE NAME OF
STRIKE.BECAUSE OF THEIR ORGANISED NETWORK THEY
TRY TO BULLY THE GOVT AND ACHIEVE THEIR WANTS.
18. HUGE MARKET POTENTIAL
India is a country with huge population hence the
potential market is high by keeping this in mind the
PUBLIC SECTOR BANKS should treat each customer in way
that they should satisfied. Once we retained the
customers with us that is the BEST WAY OF MARKETING.
Next while offering loans we should very careful and well
analyze customer whether he is capable of repaying the
loan. Once verified we have to provide loan so NPA
automatically be minimized.
