“Suppose you are not selected, what will you do?” That is the final question sometimes candidates have to answer in a Public Sector Bank promotion interview. The answer to this question may not have anything to do with the promotion as such because ultimately promotion depends upon the candidates’ score based on performance and confidential […]Read More
I have discussed RBI delegation of financial powers, long term corporate policies, internal risk rating and the DFS in my previous posts. Soft skills is another area where banks can invest their time and money to reduce operational risk. Soft skills are different from technical skills. It is something related to behaviour and character demonstrated […]Read More
In a recent ( 21st September 2020) paper titled “Indian banks: a Time to Reform”, authors Viral V Acharya and Raghuram G Rajan mention that “the winding down Department of Financial Services in the Ministry of Finance is essential, both as an affirmative signal of the intent to grant bank boards and management independence and […]Read More
Internal risk rating (IRR) exercise undertaken annually by banks is like an antibiotic as their credit officers can thereafter conscientiously discard borrowers with a poor prognosis. Rating process The IRR exercise is intended to rate all standard accounts and the Rating Managers at banks begin the process of Rating as soon as audited financials are […]Read More
In my earlier articles, I discussed the section 35 RBI inspection and about the risk from the imperfect system of delegation of financial powers within the organisation. On the same dimension, this article discusses the need of stable management policies so as to reduce the operational risk. We notice that highlights of annual results […]Read More
A consistently growing banking institution survives on perfecting its systems. Here I am writing about one such system that needs to be perfected by banks for perpetual existence. Delegating financial powers to officers (DFP) is the most significant system to manage according to me, after core business process systems. I would place DFP above the […]Read More
Bank officers generally consider RBI inspection as an external audit inasmuch as it is not going to matter in their career progress. They also believe as some event that can be managed as it happens. The feeling of insignificance or lack of seriousness is based on two facts. Firstly, RBI inspection usually happens after the […]Read More
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