DIVESTMENT OF PSU BANKS WILL RUIN INDIAN ECONOMY IN THE LONG RUN

Pinky: - Idiot! You are such a fool. Why the hell have you resigned from Mahindra Satyam? You are unemployed now. There are no jobs in the market now. You have just ruined your career, dear.

Arindam: - Arrey, at least, resignation is far better than job termination. I used to work as an Analyst (PMO) for ADMS-JAVA circle. After the management re-structuring by Mahindra, the entire unit have been closed. Already more than 500 people of JAVA-ADMS unit have been shown the door. They kept me in virtual pool and told me to find a job within 18^th December 2009, otherwise, my job will automatically be terminated. And, they also provided me an option of Loss of Pay (LOP), where I can stay in the payroll of this company, but, I will not get any salary. So, for me, the only feasible decision was to resign and I did it on 2^nd December 2009 only.

Gautam: - Oh! Just forget your job in Mahindra Satyam as one of the nightmares of your career and move ahead. In your case, I will say that you have taken a good decision to resign. The company ‘Satyam’ does not exist at all. It is all of Mahindra now. So, they will just fire the previous Satyam employees; if not today, then maybe tomorrow. By the way, what are your future plans now?

Arindam: - Hmm…let me see. I am looking for a new job, but side-by-side, I will try to crack any PO exams of any PSU Banks, as early as possible. For that, maybe, I need to get some training about it.

Sanjana: - Wait, wait, just hang on. What did you say, PSU Banks? Arindam, you have done your MBA Post-Graduate degree; and you want to join in a PSU Bank as a Probationary Officer? Are you mad or what?

Pinky: - What is wrong in that? Indian Government has increased the pay scale and there are so many facilities as well as benefits in these PSU Banks. Above all, there is a job security.

Gautam: - Boss, those sweet days have gone. Nowadays, a branch manager of any PSU Bank does not come back home before 10.30 PM. If today, the private banks like ICICI, HSBC, and HDFC banks are faring well in the market, then it is due to those lazy and lagging attitudes of the PSU Banks’ employees towards their customers. Do you think that if SBI would have always updated their products and if they would have implemented online or IT-related operations in their banking transactions, then ICICI would have ever got any response from anyone?

Sanjana: - The Indian Government is also planning for divestment in the PSU Banking sector. See, the logic is very simple. First of all, the Indian population is increasing. On the other hand, 67% of Indian populations are below 38 years of age. The retirement age has been reduced to 56 years from 60 years. When these people are resigning from the banks at this age, the PSU banks are finding a huge gap in the number of employees, that they should have. That is why, all the PSU Banks are now going for bulk recruitment for their junior and middle level management, and they are hiring young and fresh people to compete with the work culture of all these private banks.

Arindam: - The medical science has improved a lot and as a result, on an average, people are now dying at the age of 75 years. Now, after 58 years, the government has to pay the pensions to these people for another 15 years or so. That is becoming a huge burden for Indian Government. To curb that expense, they are somehow applying the strategies of divestment or motivating the PSU banks to acquire the private banks. Sometimes, you will find the merging of banks also. So, at the end of the day, the Government is reluctant to reduce its stake on the PSU Banks in order to improve the work culture, because as an employee of a PSU Bank, if they cannot give any results, then the investors of that PSU Bank will not spare them at any cost.

Pinky: - To a certain extent, I agree to your point. But, if the government will reduce its stake in any PSU banks and will gradually make it a private bank, then don’t you think that it will directly affect our Indian economy. For example, if today SBI becomes a private bank and there is a huge global market recession, then who will rescue them. Where will be the security that my money will be safe, if I keep money in a bank? Arindam, “DIVESTMENT OF PSU BANKS WILL RUIN INDIAN ECONOMY IN THE LONG RUN.”