NEWS & ADVICE : PERSONAL LOAN
PSBs asked to fasten up measures for non-profitable branches
By Vaibhav Aggarwal
Jun 25, 2012
Print    Email    RSS   

Department of Financial Services (DFS) has issued a directive instructing public sector banks to get their strategies for reversing their loss making branches into profitable branches, approved by their respective boards, at the earliest. The directive has been issued even to banks such as SBI and IDBI.

A number of banks have already prepared such strategies but they cannot implement the strategies as they are yet to be approved by their respective boards.

According to official sources, the Finance Ministry is of the view that it is important for banks to implement these strategies quickly. Only then can the loss incurring branches of the banks be turned into profitable branches.

Once the branches start earning profits it would boost employee's morale besides improving the figures in the books of the banks, such as net profit, net interest margin and business per employee.

The Department of Financial Services, also said that after these strategies get approved by the boards of the banks, the responsibility of attaining the targets would lie with the regional/zonal managers of these banks.

Mr. D.K. Mittal, the Financial Services Secretary, further added, "If there are loss-making branches, then we have to re-look them. Ultimately, branches have been set up to earn."


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Winning in Emerging Markets by Tarun...
LAP or personal loan: Which one to choose?
Guidelines to apply for NRI Personal Loans
Gold based financing; 'loan to buy gold...
Do rising NPAs reflect an ailing banking...


HOTEL: CaℒL Giℛℒs In Kharar 09855660911...
Model Escoℛts Service In Pune 8888IOO484 Caℓℓ...
What is the outstanding Amount for my personal loan

NEWS THIS WEEK
LVB bank joined hands with NCML Feb 18, 2015
Syndicate Bank hiring 5000 new staff Feb 12, 2015
SBI donated Rs 8.6 cr as a part of CSR activity Feb 11, 2015
Canara Bank tied up with NHBC Feb 9, 2015
Hiring for Probationary clerks in South Indian Bank Feb 5, 2015
News Archive