PSU BANKS IN INDIA GETTING SANDWICHED IN THE BATTLE BETWEEN NET PROFITABILITY AND SOCIAL RESPONSIBILITY !!!

"To improve the net profitability,

any PSU Bank in India always try to disburse more CREDITS;

but, if majority of those advances become NPA and affect the Balance Sheet too much

in the name of provisioning; then RBI records it in the book of banking DISCREDITS.

To know a borrower perfectly,

PSU Banks rely on CIBIL Report and KYC Documents,

which are utilized efficiently as Vigilant LENS.

Despite so much scrutiny, appraisals and information gathering;

any advances can become NPA; that's why, traditionally,

before sanctioning any loan, PSU Bankers rely more on their own sixth SENSE.

The Finance Ministry questions RBI many a times

when majority of PSU Banks in a year

fail to improve their net PROFITABILITY;

but, side by side, it has to be considered that a majority of government sponsored loans

become NPA and Indian Government never orders any

loss making PSU Bank to not to take any social RESPONSIBILITY."-Arindam Sain