Banking Industry

The banking sector has come a long way. It has grown by leaps and bounds in a short span of time due to factors including:

1) Widespread usage of information technology.
2) Increased urbanization
3) Ever rising rural awareness and higher participation.
4) Strong and vibrant industry regulator
5) Enhancement of its product portfolio
6) Higher service standards.

Modern day banking

In the last two decades banking services have evolved from largely managing accounts which include deposits and loans to issue of credit and debit cards, offering demat services , ATM machines, Real Time Gross Settlements (RTGS), net banking consumer finances etc.

In fact, investment banking (a particular form of banking which finances capital requirements of enterprises) has also become a specialized and niche field in banking. Some of the core services offered include underwriting acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate re-organization etc. It also provides financial advice to investors and serves them by assisting in purchasing securities managing financial assets and trading securities.

The future

Going forward the growth will continue due to various reasons such as:

1) Increased number of products and services under the banking umbrella.
2) Scope to increase market penetration in semi-urban and rural India.
3) Higher economic growth.

The world extolled the virtues of the Indian banking sector in the wake of the global financial crisis. Its caution its regulatory rectitude, its abidance with best practices.. But what seemed to have gone unnoticed was that fact that despite towing the line, they have excelled in terms of services.

PSU Banks

In fact, PSU banks the stalwarts of the Indian banking sector, offer services that are second to none, the world over.

Right blend

There is a niggling feeling with customers that the more automated a bank gets, the poorer the customer service becomes. While tech savvy banks may offer 24 hour help lines, it all boils down to communicating with an interactive recorded voice machine or speaking to a green behind the years call center executive. Neither of these leave the consumer with the satisfaction that interacting with banking professionals can.

PSU banks with their widespread network of branches offer you the right blend of physical and virtual banking. You have the option to either step around the corner to nearby branch or just log on to their websites or call a customer executive, depending on what suits you best, irrespective of whether you are looking for a summary of your accounts status, term deposits, loan accounts or of you have queries on your transactions or If you would like to undertake fund transfers or give standing instructions or even request a simple cheque book.


In addition, to offering you traditional banking products like loans for every reason and every season and deposits with numerous variants, PSU banks have tied up with insurance companies to offer their customers insurance products as well, since as far back as the beginning of this century.

Mutual fund and equity broking

For those who thought that banking products were for the faint hearted think again. Today, banks give their customers access to equity linked products such as mutual funds, structured products and even stock broking itself. While mutual fund houses distribute their products through the bank’s network, banks themselves create structured products which comprise of various debt and equity market instruments for their high net worth customers. Several PSU banks have tied up with broking houses to offer online trading services where usually the broking firms provide the trading platform and that bank provides the savings and demat accounts.

Simply symbiotic

Broking outfits, insurance companies and mutual fund houses benefit from the PSU bank’s network of customers while the banks benefits from fee based incomes and additional business form existing customers. But most importantly the customer benefits from access to a wide range of financial planning products at the friendly neighborhood PSU bank.

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  • Do you know a Bank of flatterers, sycophants, yes-men and money makers?

    Do you know a Bank where most of top executives are accused of corruption, where officers are promoted, posted and transferred as per whims of big bosses and where seniority is meaningless, merit is useless, only godfather is counted?

    Where old officers are shunted away and humiliated whereas young but incapable are being given better scale and better posting?

    Do you know a bank where goof officers do not to be promoted, do not take part in promotion process, do not want to take initiative, and do not put his knowledge, innovative ideas into action?

    Do you know a bank where art of making career and leading a comfortable life is to praise bosses, union leaders, give golden gifts to bosses and union leaders, earn money through illegal means and share the same with bosses and leaders?

    Do not bother if accounts becomes NPA, you should know how to rephase them, restructure them, hide them from system driven NPA or ultimately write off them or compromise with borrowers – that too if you get some incentive from bank as well as customers. You need not worry for action even if commit fraud or indulge in corrupt practices, provided you have some God father in higher management or in Union domain. On the contrary you are not safe even if you are dry honest, late sitter, loyal to bank and hard worker if you do not know how to keep your boss happy.

    In brief, do you know a bank where manipulation is the backbone for survival and flattery is career maker?
    Do you know Bank Where Good officers are afraid of sanctioning credit and bad officers are going up and up by making bad advances? A bank where experienced, knowledgeable, talented officers are kept away from mainstream and deprived of promotion because they do not support lending to bad businessmen and they only make sincere efforts for recovery from NPA borrowers even if their action hurts some or the other executives.

    In a bank where Executives are those who know how to keep higher bosses happy , who are expert in keeping RBI people happy and who are well versed in concocting attractive report to please bosses in Banking Division , Ministry of Finance.
    Do you know a bank where loan are disbursed and waived only if one has good liasoning with big bosses and big union leaders?

    CA s are purchased and gifted to put their signature blindly as CAs normally desire. There are many types of NPA, declared, hidden, system driven, EAS, SMA, restructured standard etc. Latest strategy is to sell NPA to ARC. Notwithstanding this or that, hidden NPA is likely to explode sooner or later.

    Who will after all cure the system where all are birds of the same feather in bank or in RBI or in Ministry?
    Who will verify and assess he assets of big bosses?

    Bosses know the art of making clerks and innocent officers as scapegoat for all of their misdeeds; they use phones and verbal instructions for ill motivated works. When clerks or junior officers commit mistakes, when fraud or robbery takes place in a branch, Manager is held accountable and punished. But when most of the BM indulges in malpractices, Regional heads are not booked to severe task. So bosses need not worry.
    After all Time will expose the reality of such bank and its executives, ED and CMD. Let us wait for result of Half year ended and half year to come. Last quarter result exposed Indian Bank. Future will expose some other bank. I do not know when RBI will open the eyes.

    The problem is that everyone in the government is accustomed to accepting shoddy work, corruption and reign of injustice perpetuated by gang of flatterers. As a matter of fact evil doers are in all government offices; the huge malady lies in not only one or two banks, but in all departments where government is having direct or indirect control.

    I am astonished that efforts are being made to give a hike in the salary of those officers who are executives of banks and who are solely responsible for the mess they have created in bank. These corrupt executive already got preferred treatment in last Bipartite Settlement. Only quality of these executives is that they speak good English to influence their bosses.

    2nd October 2010 Gandhi’s Birthday

  • Insurance and banking trend is a real enough categories, including the accumulation and lodging companies, banks, law-abiding and simple loans, investors, brokers, and life, blooming area of ​​insurance. Overall, the industry is strong, positive, so well done. A lot of influential protocol.