T.T. Ram Mohan says “HRD is the no. 1 issue and should be the no.1 priority at PSBs” if they are to be ready to face the competition from foreign banks whose entry will become easier from 2009 onwards:
Both the finance ministry and the top management of banks are responsible for the sorry state of affairs. The ministry because it simply does not recognise that you need continuity in management at the top. Top executives, including chairmen, are routinely moved from one bank to another in one or two years’ time. The Board has no role in the matter and is in no position to hold people accountable.
The composition of the board itself leaves much to be desired. It includes politicians, which is not a problem in itself, except that the political appointees are not always the smarter lot amongst politicians. At Punjab and Sind Bank, we had the bizarre spectacle of the Chairman going public with his complaint about the behaviour of the political appointees- they were not letting him get on with his job. The sitting fee for directors is a paltry Rs 5000- is this because they are expected to make money in other ways? A top bank like SBI should have a galaxy of people of national and international repute. But who will want to join unless they are decently compensated?
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