By Ruma Dubey

What has been your experience of dealing with a PSU bank vis-à-vis a private sector bank?

Most would say, “not very good”. The majority would complain would about inefficiency.  The long wait to get even the basic work done, like getting a cheque book or getting your money withdrawn or even getting some information from the “information” counter is a nightmare. The slow pace of work, the long tea breaks and the sheer lackadaisical, I-don’t-care attitude puts off one and all. Surely after every such visit to the bank, we come back muttering that things will never change in India, even if there is a Modi! Yes, a visit to the bank makes one wonder whether ‘make in India’ will work at all!

These complaints are of the layman while those in the financial market have these complaints and more – the rising NPAs; which is again a reflection of inefficiency.  Currently the NPAs and restructured loans adds up to over 15% of Rs.2800 crore which was lent to some 24 infra projects. The recent third quarter results of most PSU banks have reflected the pain which the sector is going through. Bad loans cannot be blamed entirely on high interest rates and lower economic growth. Banks are to be blamed because when it comes to big companies, they have no verification process of end use of the funds, poor assessment and a meaningless recovery process. Banks, as per the rule book, can get a representation on the Board of the borrower firm but how many banks have actually exercised that rule?

Thus in all this background, when we hear that bank employees have got not just a pay hike of 15%, that too with arrears from November 2012, we somehow get a sense of frustration. That’s not all, they will now get alternate Saturdays off too – which is expected to bring down costs while improving efficiency as they will work more through the week. Really? Does anyone believe this seriously?

The feeling on the ground, which is also seen on the floors of the bourses is that there will be more outflow of money with no increase in efficiency. This is expected to hike costs for the banks which are already reeling under mounting NPA pressures and lower profitability. This wage hike will result in an increased outgo of Rs.4,724 crore for banks. More so, what this will lead to is an increased payout to pensioners; won’t that also be a drain on the already stressed balance sheet?

What is needed is more accountability and responsibility, take steps to improve efficiency. Why can’t the pay hike be linked to improvement in quality of work? Increased working hours does not ensure improved efficiency; working long hours does not mean that they will work well and care about customers. When customer service/care is not a priority at all, can’t measures be taken to change this attitude?

This is the change that we need – a change in attitude, to work and customers. Unless this is changed, how can Make in India work at all?  No wonder the pay hike has become an irritant.