Vinimaya Vol. XL No. 1 April-June 2019
- Ethics and Ethical Dilemmas – A Practical Approach
– Rakesh Gupta
In today's highly challenging environment, bankers are faced with several ethical dilemmas. In this article the issues related to ethics in banking have been explained using the principles that govern ethical power in organizations. The article also explains the practice of ethics with reference to governance, trust, supplier relations, customer relations, employee relations, etc. The strategies for resolving ethical dilemmas has been explained using a three step process.
- Resolution of Stressed Power Projects –Developments, Concerns and Suggestions
– V S Kaveri & Deepak Narang
The power sector in India is currently passing through a crucial stage with high and increasing level of NPAs though there is a marked improvement in overall performance in electricity generation and distribution. Hence, a need for early and effective resolution of stressed power projects is very much felt. Stressed power projects are affected by several factors including the RBI circular of February 12, 2018 forcing them to be referred to NCLT which calls for heavy haircut on the part of lenders. As a way out, the Government proposes to set up an ARC, specially meant for resolution of stressed power projects under Pariwartan scheme. Here again, the challenge is how to comply with the RBI guidelines as applicable to ARCs and ensure that the willful defaulting promoters are prevented to re-takeover their units through a backdoor. Appreciating these and many other challenges, the article attempts to assess feasibility of the proposal to set up the ARC under Pariwartan and offer suggestions, besides making a review of recent developments relating to resolution of stressed power projects for the benefit of banks and power projects.
- Enterprise System Solution for a Robust Credit Audit Mechanism in PSBs
– Siddharth Kumar Bajpai
The alarming spurt in NPAs in 2017-18 has raised question marks on the efficacy of internal audit system in public sector banks. The audit units that deal with large credit accounts in most of PSBs are still using manual formats with a lot of scope for subjectivity. Also, using manual formats is a big hindrance in collating and providing trend analysis. To facilitate strategic planning and empowering top executive in making informed decisions it is suggested that high value credit audit should be conducted on an enterprise level software with a centralised data base amenable to data mining.
- Training needs analysis and training effectiveness
– Kaushik Mukerjee
Appropriate training of employees can enable banks to achieve higher levels of performance and banks have been investing considerable resources to achieve this goal. However, the expectations that banks have from training has not been fulfilled and the effectiveness of training programmes has been a matter of concern. This article focuses on the approaches that can help in undertaking training needs analysis and ensure effectiveness of training programmes. This article offers a framework to explain how training needs assessment, analysis, learning culture and training effectiveness can help in fulfilling the goals of capacity building in banks.
- Operational Risk Management in Banks – Measures for Mitigation
– L Srinivasan
Operational risk poses considerable challenges for banks. This article focuses on the various risks associated with banking functions and with the help of various illustrative examples taken from day-to-day banking operations, suggests measures for mitigation of the risks.