Performance Is More Important Than Praising Modi Or BJP

Praising me no help, time to bite economic bullet: Narendra Modi to nation-Times of India ( Bankers should See my opinion below)

Using his significant political capital to send out one of the clearest messages a political leader has done in recent times on the need for fiscal prudence, Prime Minister Narendra Modi on Saturday said some “tough economic decisions” are on the anvil to improve the financial health of the country.

He indicated that the “stringent measures” he plans to undertake — his government will present its first budget less than a month from now — may not go down well with every section but it is necessary in “the larger interest of the nation”.

Addressing BJP workers in Taligaon in Goa, Modi hit out at the previous UPA government for its handling of the economy. “I have taken over the reins of the country in circumstances when there is nothing left behind by the previous government. They left everything empty. The country’s financial health has hit the bottom.”

He said “tough economic decisions will be required to bring the country out of the current economic mess”. He expressed confidence that the “stringent measures” for prudent financial discipline will not be for his own or his party’s interest, but “the larger interest of the nation”.

“I am well aware that my steps may dent the immense love that the country has given me. But when my countrymen realise that these steps will result in getting the financial health back, then I will regain that love,” he said.

Modi said his government will remain connected to the people and work to empower them for the development process. “The government has begun its work well. For ten years, the people of this country have not witnessed a working government in Delhi. Our government will work with a clear conscience, clear policy and strong leadership to provide good governance,” he said.

Referring to the mandate the BJP got, he said the era of coalition politics has ended. “People have given a clear indication that political parties, whether in power or in opposition, must pay heed to people’s expectations. This election has also proved that people have defeated the politics of casteism, communalism, nepotism and family. People decided that a government should be formed to provide security, prosperity, eliminate corruption and meet the aspirations of the people, solve their problems,” he said.

“We won’t be helping the country by praising Modi and praising BJP. There is no guarantee that just singing praise of Modi will improve the situation. We need to take tough measures to improve the financial situation,” he said.

Later, Modi tweeted that “time has come to take tough decisions in the interest of the nation. Whatever decisions we take will be solely guided by national interest.”

He said it is wrong to think that people in government are not willing to work for the country. “In a government set-up, most officials would like to do something for the the country. They are ready to work. This is what I can say from my experience as the Prime Minister in the last fifteen days.”

Link Times of India

My Opinion:  

This is a learning point for bankers too. Majority of bank officers are busy in keeping their bosses happy sacrificing the health of thier bank. They extend red carpet welcome to their bosses when they visit their branch. They are least bothered of health of assets and interest of their customers .

Bank Officers in general  spend most of time in praising their Regional Head, or Zonal Head or Country head. Bank officers at branches are ready to obey right or wrong advices of their bosses keeping in mind their career prospect and cream posting. They know very well that if they do not obey wrong advice of bosses they may be transferred to critical places and they may be rejected in promotion processes.  They know it very well that  if they are doing well in any branch, their boss may remove good staff and post bad staff in their branch if they fail to keep boss happy. There are many ways to punish a good working officer who do not flatter his or her boss.

 I have no doubt that health of assets of public sector bank is deteriorating and moving from bad to worse mostly because of flattery and bribery culture prevalent in these banks.

Clever top officials blame global recession or domestic situation for their failure to contain bad debts and for their failure in keeping their bank healthy and prosperous. They hide their ill-motivated acts in recruitment and promotions by projecting  image of bank fraudulently in good stream and by concealing their evil works and projecting bad assets as good assets. 

Until bank officers learn to give value to their organisation , public sector banks may not dream of any reduction  in rising trend of bad debts or any improvement in quality of lending. .They may not stop erosion in profitability .They may not solve crisis of capital in compliance of Basel III norms.

Either Bank management have to discard their so called merit oriented promotion policy or recruitment policy which produces flatterers and flatterers only. They have to stick to seniority based promotions and postings so that top officials may not rape the future of good performers. Or else Bank officers will have to have enough courage to disobey wrong verbal orders of high ranked officials and stop flattery in quest of good posting or in greed of quicker promotions. 

Flattery to yesman  is  easier and safer than the habit of sticking to ideals and principles  because it is difficult for junior officers to have animosity with their seniors who are fate makers,  if they want to lead a peaceful life.

Making transparent policy and reducing discretionary powers may help in reducing corruption in recruitment and promotions. But expecting only juniors stopping flattery is practically absolutely unimaginable.

Similarly politicians have to stop exploitation of banks for their self interest and government have to give value to real performing CEOs and not to them who simply indulge in flattery to Ministers .

Government  has to decide whether they want banks to be used for charity work and social welfare services or they want them to function as purely as commercial entity focusing on profit and profit only.

Bank officers are so much crazy and anxious to please their bosses or ministers that they sanction hundreds of crores of rupees in one day when these dignitories visit their place of work and organise a camp for loan disbursement.

There are many Branch officials who do not sanction loans to even a few persons in 365 days , manage to sanction loans to hundreds of persons in a day or two to earn blessings of bosses and political masters under whose instruction loan camp is organised in a town or city.

Such ambitious , greedy and career oriented officials undoubtedly compromise with quality of lending and give rise to bad accounts. I have no doubt in saying that loads of bad debts inflicted on these banks is nothing but outcome of officer's culture of flattery and habit of giving more importance to their bosses than their organisation.

Similarly political workers , elected representatives like MLAs and MPS and Ministers give more values and more importance to flattery to their bosses than to interest of common men who vote them to power. These clever politicians therefore advise banks to disburse more and more loans in a camp attended by them so that voters give them value even though it leads to rise in non performing assets and thus hurts the profitability of a bank.

Charity and profitability , both cannot be taken care of at the same time. Unfortunately , politicians are using taxpayers money in distributing it as charity to enhance their vote bank only . They do not bother about future of bank, as much as they care for their vote bank .

This is why , health of banks have been deteriorating year after year . Politicians care more for their health than for bank's health. Similarly bank officers care more for pleasure of their bosses than for health of banks they serve.

Restructuring of loans or selling of loans to ARC or writing off of bad loans or changing norms of identification of bad assets or evergreening of loans may give temporary relief only. IN the long run, these short term measures will prove to be more disasteous and perilous.