The book on NPA management published by IIBF has dealt with the topic in depth when NPAs in banks were sinking the PSBs in the early1990sand has brought out a statistical model as a workable solution in tackling the menace of NPAs without adversely affecting the stake holders of banks other than the bad borrowers. The Statistical model suggested therein to prevent formation of NPAs and liquidate them with the contributions from bad borrowers has been tested and found to be practical and workable

1)Business Per Employee PSBs is 141%of the PvtBk2)Other Income 8%PSB against 16%PvtBk 3)NPA of PSB 4.5%against 2%pvtbk indicate that The pvtbanks have special machinery and specialise staff to Handle/Contol Other business&NPA.No Use Though Gov increase Employees/Specialists in PSB as Current PSB Organisational Structure of PSB is unable to control.Kolkata Branch contolled by HO in Mumbai same cases for all PSBs.I Suggest a pattern"ONE STATE ONE PSB".which will reduce Admin Expenditre,NPA control

( 1 ) SURPRISE / SUDDEN, MONTHLY AUDIT OF LOANS, BORROWERS, THEIR CREDITWORTHINESS, LOAN NORMS COMPLIED REPORTS, VISITS OF AUDITORS TO THEIR PREMISES, etc. TO BE PERIODICALLY UNDERTAKEN-ESPECIALLY BEFORE SANCTIONING & AS THE LOANS GETS INTO NPAs & AFTER BECOMING NPAs. ( 2 ) NON-EMPLOYEES / OUTSIDE RECOVERY AGENTS TO BE APPOINTED TO ACT SOFTLY AS WELL AS STRICTLY WITH DEFAULTERS. THEY SHOULD ADOPT SOFT, STRICT, STRICTER, STILL MORE STRICTER & ASSET RECOVERY TECHNIQUES FOR EACH COMPOUNDING DEFAULT. ( 3 ) THESE RECOVERED ASSETS TO BE DISPOSED-OFF / SOLD IN AUCTION WITHIN 3 OR 6 MONTHS OF RECOVERY-with due information to the Defaulter / Guarantor. ( 4 ) ONLY EXISTING CUSTOMERS OF BANKS FOR MORE THAN 2 OR 3 YEARS TO BE GIVEN LOAN-ie. a person who wants to obtain loan, should not become a customer " NAME SAKE ." for getting loan. EXISTING CUSTOMERS FOR MORE THAN 2 or 3 YEARS or AGE-WISE TO BE GIVEN PRIORITY FOR LOAN THAN LOAN TO A NEW CUSTOMER. Thanks, Shanmuganathan B / 98948-66843 COIMBATORE.

All banks should be regularly monitored. audit of all the branches should be. Bank staff should be updated . NPA Account regular monitored and try to regularize the same. Public should be aware about operation of Banks. Rural Credit Facility should be monitored and to be reached to only needy kisaan/ Person.CA firm should be unknown party to the Branch and its officials. Auditor should report comment on real time basis to the Authority and RBI. The faith of public shall be increase.

I feel that the expenses incurred and income earned should be divided into two sections. One the activities of the Bank as a Banker and second which is incurred to meet social obligations towards the weaker section of the society. The banks should then analyse whether its making the profits in line with that of Private Sector Banks. And check if it is discharging the government schemes efficiently and if there is improved efficiency in regards to costs from scheme to scheme.

The current lot of PSU bank employees are generally a fatted, over-fed lot, with little or no accountability to the public, whose taxes and accounts they r the beneficiaries of. Increase accountability. Improve hygiene and inner-office environment, link salaries to performance instead of number of years in the bank. Training in customer relations to run concurrently with training in rules and bye-laws, will go a long way. Or PRIVATISE !

1. Government Should desist from the culture of loan waiver 2. Rewarding Honest Customer for timely repayment and financial exclusion for the defaulters. 3. More Autonomy to banks in Policy making, HR, Customer selection primarily corporate customers without external influence. 4. Robust Insolvency Policy for Corporate Defaulters and their Beneficial Owners..5. DRT's and related law enforcers performance should be reviewed periodically.5. Defaulter's asset sale should be eased without hurdles.

TO INCREASE THE EFFICIENCY / PERFORMANCE OF PSBs, THE FOLLOWING IDEAS CAN BE FOLLOWED : ( 1 ) WILFUL DEFAULTERS LISTS / NPA LISTS OF ALL TYPES OF LOANS TO BE RELEASED FOR PUBLIC INFORMATION BY PSBs, EVERY MONTH. ( 2 ) PSBs SUFFER A LOT DUE TO AGRI / CROP LOAN WAIVER & INTEREST SUBSIDY BY STATE GOVTS. NO LOAN PRINCIPAL AMT. WAIVERs TO BE ALLOWED. FOR INTEREST SUBSIDY TO FARMERS, UPTO DATE INTEREST AS ON THE DATE OF SETTLEMENT / PAYMENT IS TO BE RECOVERED-even if it is subsidised by Govt. ( 3 ) LIST OF EMPLOYEE NPAs / INEFFICIENT EMPLOYEES ALSO TO BE RELEASED EVERY QUARTER OR SO. ( 4 ) ALL ASSETS RECOVERED BY BANKS-for Non--payment of Loans ) TO BE AUCTIONED WITHIN 3 OR 6 MONTHS OF RECOVERY OF THAT ASSET. ( 5 ) IN MANY PSBs, MANY NEW & OLD CHAIRS, TABLES, COMPUTERS, PARTITIONS, etc. ARE LYING IDLE & IN DAMAGED CONDITION FOR A LONG TIME. THIS HAS TO BE SOLVED. ( 6 ) BIOMETRIC SYSTEM OF ATTENDANCE TO BE ADOPTED FOR EMPLOYEES & STRICTER EMPLOYEE MONITORING SHOULD BE DONE. Thanks, Shanmuganathan.B / 98948-66843. COIMBATORE.

provide reasonable salary hike. without good salary you cant expect good service from bank employee.Bank employees are going for indefinite strike in near future. salary revision is pending from 2012.

Core: Revisit core intent of bank, & review business, people & processes in context. Ownership - Review legal ownership structure to ensure independence in conducting daily business. Identify sick banks : based on relevant combination of parameters & initiate consolidation/merger as appropriate. Restructuring : Operational, technical & management level restructuring on a case basis to improve efficiency. Consulting : Provide expert help where necessary for improving existing/ new areas