Govt taking steps to infuse professionalism in banks: FM

Govt taking steps to infuse professionalism in banks: FM

Moots professionalism to curb disturbing trends in the sector

Govt taking steps to infuse professionalism in banks: FM

The government is taking steps to infuse professionalism in management of banks and strengthen their  risk management system, Finance Minister Arun Jaitley said Thursday in the aftermath of the recent instances of corruption involving some public sector lenders.

“Some recent instances have been disturbing, I would only hope that they are a drop in the ocean… and there will be no repetition of them,” he said at an event by Indian Bank here.

He said the Centre had taken decisions with regard to professionalising the management of banks. “We expect banks to have better risk management. The Department of Financial Services has been actively working on this front,” he said.

His comments came days after Syndicate Bank CMD S K Jain was arrested for allegedly receiving a bribe of Rs 50 lakh to enhance credit limits of Bhushan Steel and Prakash Industries. That was followed by news of some officials of OBC and Dena Bank allegedly misappropriating funds worth Rs 436 crore from their fixed deposit customers.

 “Credibility is of extreme importance as far as banking system is concerned. We must endeavour improved standards of credibility,” he said. 

“When global banking suffered setback few years ago, Indian banking system survived the sub-prime crisis, we have our own sense of banking values and it is these sense of banking values which have paid well," Jaitley said. 

Jaitley also said that the government would on August 28 launch its flagship programme ‘Pradhanmantri Jan-Dhan Yojana’ under which an account holder will be given a debit card. An insurance of Rs 1 lakh will be guaranteed with the debit card.