MY VIEWS IN ECONOMIC TIMES ON BANKS' OPERATIONAL COST

Economic Times Story on 09.02.13 : Slash operational costs to reduce interest rates: FM P Chidambaram to banks  

Comments of MILAN K SINHA (PATNA)
9 Feb, 2013, 9:16 PM

FM has rightly stressed the point by saying that Banks can attempt to improve their operating efficiency, reducing costs, and pass on the benefit to borrowers through lower interest rates... With more than 14500 branches spread across the country, with the rare privilege of managing the treasury transactions of the government country wide thereby having natural benefit of garnering large chunk of low cost Govt. deposits, with exclusively highest degree of internal human resource career progression upto the level of chairman which takes care of continuity in policy formulations and its execution keeping in view both the short term as well as long term growth perspective of the country' largest bank, SBI is definitely better placed to engage itself much more sincerely and aggressively to make itself the centre of excellence in Indian Banking space. It goes without saying then that the Bank has to i) enlarge the portfolio of CASA(Current A/C & Savings A/C) deposits by perceptibly improving its customer service & reaching out to rural customers in a big way, ii) ensure far better fund/asset management with sizeable reduction in NPA(Non Performing Asset) and iii) reduce the cost of operations by ruthlessly stopping wastage by identifying such areas of avoidable expenses which are still not few in our banking operations including that of SBI. This would definitely set a commendable trend for other banks, particularly PSU banks to emulate for staying healthier in coming days.

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                                                           Will meet again with Open Mind. All the Best.