Be aware of new banking business model!

By Shri Devidas Tuljapurkar, General Secretary, Maharashtra State Bank Employees Federation


Now banking has changed. Banks are experiencing stiff competition & are entering into rat race. In order to be ahead of all are setting up ambitious targets & in order to achieve it are pursuing, pressurising, harassing & at a times are torturing field staff without providing adequate staff & infrastructure. The field staff is being lured by offering better postings, early promotions, financial incentives or foreign trips who in order to have it are resorting to shortcuts, are tempted to deviate from set procedure & at times are resorting to unethical means & all this is being done with direct or indirect consent of the top or at a times at the instance of top as a strategy. The Bank of Baroda incident which RBI has unfolded & has penalised for, is the tip of iceberg. In each Bank at all levels such practices are being followed as a strategy & it is very difficult to believe that till now the RBI is not aware of it!

Whether it is deposit mobilization or scouting of retail credit business or sell of third-party products such as insurance or mutual fund or recovery in write off accounts or in NPA accounts everywhere such unethical practices are being followed as a strategy wherein at a times Board is also being involved. This is the new banking business model which bankers are pursuing. If this persists banks will invite risk & precisely the Bank of Baroda incident is the beginning of it. May be other banks also are resorting to it but are able to supress it but in the case of Bank of Baroda it has seen light of the day. This is high time that banks should define their role & responsibility or otherwise the entire banking may have to pass through tough times.

Devidas Tuljapurkar
General Secretary
Maharashtra State Bank Employees Federation



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