Letter to BS: Banks suffer due to poor recruitment policy, lack of exposure

After dismantling of term lending institutions, banks were expected to fund long-term infrastructure projects also without being technically equipped or financially capable for the same

Debashis Basu in his columns has been berating the performance of the public sector banks (PSBs) and their lack of accountability. He seems to suggest that there is corruption at the higher levels. While holding no brief for any of the top executives, one wonders if the performance is not on account of poor judgement and incompetence. Bankers’ rise to the top has not been due to merit or performance alone. The banks have suffered due to poor recruitment policy, the lack of lateral movement and poor training and exposure. Combine this with various pressures, especially from the government which