INDRA DHANUSH- BANKING SECTOR REFORMS

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Aug 17, 2015, 11:16:37 AM8/17/15
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Dear Friends,

                                     Under the back ground of announcement of seven point plan called INDRADHANUSH by Finanvve Minister for over all change in functioning of PSBs, General Secretary has issued a letter vide Ref: 2015/223,Dated 16.08.2015 to its  Office Bearers/ Central Committee Members/ State Body Chiefs,on the subject ,the copy of which is furnished here under for information of all:-


 

Dear Sir

                           Re BANKING SECTOR REFORMS 

 

You must have read in papers that the Finance Minister has announced 7 point plan called INDRADHANUSH for revival of public sector banks on 14.08.2015. These action points/ plans when implemented will have far reaching impact on functioning, ownership and set up of public sector banks in the coming years.

 

2. Major points of plan are as under

 

(a)Appointment of Managing Director/ Chairman of PSB from private sector. Accordingly, P.S.Jaykumar, 53 year old CEO and Managing Director, Value Home Private Limited has been appointed as new chief of Bank of Baroda. Appointment of CEOs in other PSBs will happen soon. Similarly, MDs/ Non- Executive Chairman from private sector have been appointed in other 5 banks.

 

(b) Bank Board Bureau (BBB) will be constituted which will start functioning from 1.04.2016. It will perform functions of appointments at senior level in PSBs, coordination with boards of PSBs in formulating business strategy and it is likely be converted in holding company for PSBs later.

 

(c)De- Stressing plan to reduce NPAs in 5 identified sectors like steel, highways, power etc.

 

(d) Allocation of capital

 

(e) New frame work of key performance indicators

 

(g) Higher performance bonus for MDs/ CEOs

 

(h) ESoPs for top Management

 

As a retiree organisation we shall keep our finger crossed to closely watch the development because changes likely to come in basic character of public sector may adversely affect interest of retirees. Now profitability will be the major indictor of banks and all other parameters including social banking witness in  last 45 years will be next.

 

                         With Regards

 

                                                                Yours Sincerely

 

                                                                ( S.C.JAIN )

                                                        GENERAL SECRETARY

Satyanarayana Rao

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Aug 17, 2015, 11:28:45 PM8/17/15
to bankpe...@googlegroups.com
Change is the law of nature.Whether we like it or not lot of reforms are taking place in and around the world .what was good in early years for  banking  sector is out dated in today needs of banking services . Technology has brought a sea change in the functioning of banks at global level.Efficiency and survival of financial sector is vital for national development and progress in all fields whether it is industry or agriculture or power generation or providing good infrastructure or health care to all . Non performing assets are grate concern for survival of banking sector. Any reforms without stringent laws to punish willful defaulters and financial offenders will not bring any good expected resulted . govt and finance minister  should focus the attention and make in depth study and  make all out efforts to recover the out standing  money of banks. If this is taken care by stringent laws to punish the willful defaulters the financial sector is safe and reforms are welcome otherwise  it will be a futile exercise and an eye wash.



On Monday, 17 August 2015 8:46 PM, PM <moha...@gmail.com> wrote:


Dear Friends,
                                     Under the back ground of announcement of seven point plan called INDRADHANUSH by Finanvve Minister for over all change in functioning of PSBs, General Secretary has issued a letter vide Ref: 2015/223,Dated 16.08.2015 to its  Office Bearers/ Central Committee Members/ State Body Chiefs,on the subject ,the copy of which is furnished here under for information of all:-

 
Dear Sir
                           Re BANKING SECTOR REFORMS 
 
You must have read in papers that the Finance Minister has announced 7 point plan called INDRADHANUSH for revival of public sector banks on 14.08.2015. These action points/ plans when implemented will have far reaching impact on functioning, ownership and set up of public sector banks in the coming years.
 
2. Major points of plan are as under
 
(a)Appointment of Managing Director/ Chairman of PSB from private sector. Accordingly, P.S.Jaykumar, 53 year old CEO and Managing Director, Value Home Private Limited has been appointed as new chief of Bank of Baroda . Appointment of CEOs in other PSBs will happen soon. Similarly, MDs/ Non- Executive Chairman from private sector have been appointed in other 5 banks.
 
(b) Bank Board Bureau (BBB) will be constituted which will start functioning from 1.04.2016. It will perform functions of appointments at senior level in PSBs, coordination with boards of PSBs in formulating business strategy and it is likely be converted in holding company for PSBs later.
 
(c)De- Stressing plan to reduce NPAs in 5 identified sectors like steel, highways, power etc.
 
(d) Allocation of capital
 
(e) New frame work of key performance indicators
 
(g) Higher performance bonus for MDs/ CEOs
 
(h) ESoPs for top Management
 
As a retiree organisation we shall keep our finger crossed to closely watch the development because changes likely to come in basic character of public sector may adversely affect interest of retirees. Now profitability will be the major indictor of banks and all other parameters including social banking witness in  last 45 years will be next.
 
                         With Regards
 
                                                                Yours Sincerely
 
                                                                ( S.C.JAIN )
                                                        GENERAL SECRETARY
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