TE, what's your perception of PSU Banks Except SBI?

[i_rock098]

In RBI's lingo, too big to fail doesn't mean it can't fail, it means it can't be allowed to fail.

Meaning the government and RBI will rescue them if they are going to fail.

Also, Lehman Brothers type of failure can't happen today in India. Sure, other types can, but it's highly unlikely.

Further to that there has been no decent size bank that has been allowed to fail. Even cases like Yes Bank they put in measures to either merge or infuse capital to make it stay afloat. Only NBFC or co-operative banks have truly failed, NBFC failing doesn’t really affect the depositor because they don’t take retail deposits while cooperative banks are usually very small and localised.

 

[ibose]

That's like calling Titanic unsinkable.

We all know what happened to Lehman Brothers and Evergrande when they were called too big to fail.

The concept of SIBs came globally only after the Lehman Brothers failure and its aftermath. LB had actually gone with a begging bowl to the then Govt but were refused, leaving them no other option but to declare Chap 11.

 

[kalph09]

^ When RBI makes such statements, it makes banks overconfident and cocky to make risky investment moves knowing they have RBI bailing them out with public money.

 

[ibose]

^ When RBI makes such statements, it makes banks overconfident and cocky to make risky investment moves knowing they have RBI bailing them out with public money.

Still off-topic, but it is not a statement but a regulation. It comes with more stringent riders and reserve requirements etc. etc. Here are a few links to familiarize yourself on what SIBs actually imply before trivializing the concept -

Systemically important financial institution - Wikipedia

en.wikipedia.org

Reserve Bank of India - Database

 

[lockhrt999]

TE, what's your perception of PSU Banks Except SBI?​

My experience (which is not a perception) of PSU banks including SBI is bad. They are for the people who have too much time on hands. They operate like govt office and that's bad. People work in them have a full job security and no incentive to perform.

 

[Mr.J]

That's a perception though. Talk to actual employees and you'll come to know how overworked they are.

Stalled recruitment in state-run banks leading to poor customer service, employee churn

Many youngsters are choosing to leave public sector banks due to the bureaucratic work culture and minimal opportunity for growth

www.moneycontrol.com

Are the Employees of Public Sector Banks Overexploited? - Centre for Financial Accountability

Newton Kumar who is known on Twitter as @idesibanda has compiled data on the banks’ business and employee strength based on annual reports of the banks. The data on number of customers per employee throws new light on the performance of employees of Public Sector as well as Private Sector Banks...

www.cenfa.org

Staff overworked, under mental stress but management doesn’t care, alleges bank union

Employees of the public-sector bank, Central Bank of India have alleged that the top management are apathetic towards the plight of the staff in the wake of the

www.thenewsminute.com