The Hindu Business Line : `Extend rural stint mandate to other staff'

What they say
Suitable incentives should be devised to sustain employee interest.
Proper education and training of the rural masses in banking must.
Need for formulating a suitable recovery policy suggested.

Hyderabad , Nov 3

The mandatory requirement of minimum stint for officer cadre should be extended to clerical staff to meet the challenging demand of staffing semi-urban and rural branches.

Chairing a session on `Inclusive growth: Infrastructure and human resources,' at Bancon 2006, Dr A.K. Khandelwal, Chairman and Managing Director of Bank of Baroda, said that suitable incentives should be devised to sustain employee interest in the new working environment.

Education is the key driver of a knowledge economy. Proper education and training of the rural masses in banking is an area bankers need to focus.

According to Mr S.S. Kohli, Chairman and Managing Director of IIFCL, the public sector banks have got the best manpower. Given the limitations within which these banks are known to operate, PSBs deserve `Navratna' status, he said.

`Blessing in disguise'

VRS options have proved a blessing in disguise since they allow modern technology to impact the banking industry with desirable results.

Mr K.N. Prithviraj, Chairman and Managing Director of Oriental Bank of Commerce, felt the need for formulating a suitable recovery policy even as the larger cause of financial inclusion is promoted.

Banks have sought to take the easy way out when confronted with bad loans in the SSI/SME sectors. They should have a legal entity to deal with such situations, especially since introduction of SARFAESI has presented them with only limited options.

Ms H. A. Daruwalla, Chairman and Managing Director of Central Bank of India, was of the view that banks should look at bringing at least 5-10 per cent of the "productive population" in each village within their reach in a phased manner over as many years.

Human resources are crucial to the success of financial inclusion. Banks should look at having local hands speaking the local language assisting loan dispensing officers.

Major handicap

Poor communication capabilities have often proved a major handicap in the delivery of credit.

According to Mr Samak Ghosh, President (Corporate Finance and Development Banking), Yes Bank, financial inclusion should address the urban poor as well. `Local loan officers' can be deployed to good effect.

Almost all speakers felt that agricultural graduates need to be recruited in larger numbers to drive financial inclusion.