Banking sector- Real Targets or Hangman’s ropes ?

Banking sector- Real Targets or Hangman’s ropes ?

The recent suicide of K S Swapna (40), manager of Canara Bank, Koothuparamba branch, has raised questions regarding the unhealthy rise in competition and unreal target setting, in banking. A bank job was once considered a safe and sound career, with decent pay, healthcare cover for the employee and family and excellent retirement benefits. Bank Managers, were held in high esteem in the society and their working conditions were more than good. Those were days when banking in India was largely in the hands of nearly a dozen or so banks all owned and operated by the Government, since the 1960s bank nationalization.

However with decentralization in the eighties and nineties, and the consequent advent of private banks into this lucrative market, competition increased. The nationalized banks were relatively safe at the onset, but with the private banks beginning to grab greater chunks of the market, with customer friendly banking practices and better returns for their investment, the government banks were forced to take urgent corrective action or be wiped out of the market. Thus began the intense competition between banks.

Banking has always been an area of intense competition, in the international scenario. There have been countless suicides and murders, especially in countries like USA, where banking was one of the most competitive of all businesses. But India was a safe platform for banking, especially, the employees. But with the turn of the century everything changed. The branch level management were suddenly burdened with unrealistic targets. This was in terms of loans disbursed, deposits made and customer base achieved.

Today’s bank manager lives with a double edged sword hanging over their heads. He/she is burdened with deposit targets and loan disbursals that are as unreal as they are unsustainable. The bank, have also dumped the onus of loan recovery on the branch level managers, who now is caught in a quandary, as to disburse a loan or not. Give it out or be caught below target – give it and be responsible for recovery, especially, bad loans. They are now, to bring in deposits and investments, competing with private banks offering better returns.

This in turn has brought severe strain on the branch level managers. They are seen to have been seriously impacted on their mental and physical health. Their work – life balance is thrown asunder. In fact it is not uncommon to see them at work even during their weekends off. They get very little time with their families affecting their family lives adversely. In order to hold on to their jobs, these managers are forced to take outrageous risks and work impossible hours, affecting their own lives and health, failing which they will be subject to penal measures of their bosses.

The plight however ends at branch level. At the regional and zonal level, the higher up managers enjoy a relatively easy life. They are not burdened with targets and have very little responsibility on the status of loans. They spent their working hours in the comforts of their air conditioned offices and occasionally jet their way to major conferences and five star living. With strong employees union behind them, the clerical staff are not quite as hampered as much as branch level managers. The officers’ unions, though they exist are not as strong or supportive as the employees’ unions.

One suicide will raise a hue and cry for maybe a month or two at the most. Swapna will be forgotten, until someone else chooses to end their lives at the end of another rope. How many deaths will it take until firm measures are taken and the creators of such pressures are brought to task? How many more have to die of tension or stress related illnesses before targets are revised and the upper management be brought to the fore. Only time will tell.

Banks need stress management trainings and programs. Every bank needs a psychologist at the regional level at the very least. Managers at this level, should not be allowed to work on those days when they have days off. Stress relief camps and health checkups need to be conducted at branch level, and stress management drives conducted. There needs to be centralized planning of targets and the entire body of management should be given the responsibility. Banking, while being an essential service is not a round the clock service in terms of manpower utilization, especially with electronic banking on the rise.

To the orphaned children of Swapna, who now are truly orphans as their father had passed away due to a heart attack, the loss can only be imagined. Will the bank, at least be answerable to and responsible to these innocent children’s upbringing and sheltering?