Top 10 challenges for public sector banks in India - Do you know??

The banks have to suitably realign their existing human resources from surplus to deficit pockets and readjust staffing pattern in a computerised environment. Surplus staff from very large branches which are now computerised, 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.

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 I see no reason why anyone would like to go to private banks...

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.

Banks will also 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.

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 credithworhty persons & industries after seeing their creditworthiness.

In public sectors banks I dont find the major employees conception clear in regarding to the operations and function systems of bank.

I feels its the main area required which served to ultimately consumers for mainatining its uniform stability.

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 behaviour of their staff but they should be well trained to resolve the problems of the customers.Banks have opened too many service centres( Branches) but these centres 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.

INDIAN BANKING SYSTEM HAS SO MANY PLUS POINTS BUT THE MOST UNWANTED IRRITANT IS THE MILITANT TRADE UNION ACTIVISM NOW AND THEN 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.