“When countries in the West are relying upon relationship banking, India is looking at machines,” he criticised. He was delivering the inaugural address at the 15th conference of Karnataka Bank Officers’ Organisation (KBOO) at PVS Kalakunj here on Sunday.
Customer satisfaction is the highest when there are human beings behind a counter rather than automated machines, Mr Nagaraj remarked, adding instances of foreign countries where customers refused to transact with certain banks when they offered every service through machines.
Coming down heavily on the new policies of the Union government “brought in the name of reforms in banking sector,” he said unless everybody fights against the decisions of the government, “it is going to be damn difficult” in the days to come.
Merger of banks
Terming the new generation private sector banks as “hazards” to the public sector firms, Mr Nagarajan said unable to resist indomitable pressure from such banks, the public sector banks are going for merging. However, he said, the low achievement of certain banks have also been leading to such developments.
State Bank of Patiala announced 400 per cent dividend to its customers when the average dividend was just 35 per cent. The State Bank of Sourashtra was able to announce a dividend of only 5 per cent, which the government is thinking of merging with the State Bank of India, he stressed.
Criticising the government’s initiatives in the post-liberalisation and privatisation era, he said when the average salary of bank employees is Rs 24,000 per month, the NGOs are ready to provide work force to the banks at a monthly salary of just 2,400.
Worst hit banks
Speaking on the occasion as the chief guest, Karnataka Bank Chairman Ananthakrishna said old private sector banks are the worst hit in the total banking scenario. The share of old public sector banks in the total business was 7 per cent, which has been declined to 5 per cent, where as the share of private sector has risen to 27 per cent. The share of foreign banks has reached 6 pc, while that of public sector has come down to 73 per cent from a state of 80 per cent, he explained. Amidst the regulations, competition and less mobilisation of funds, the old private sector banks have become the worst hit. We are vulnerable to both within and outside, he noted and added that the only damage control method is to work hard and be committed. KBOO President C K Ananthakrishnanyya presided. AIBOA General Secretary (State Committee) K Vishwanath Naik, KBEA General Secretary P R Karanth among others were present.