Indian Banks’ Association welcomes move

The Finance Ministry’s decision to ask public sector banks to complete staff accountability exercise within six months from the date of classification of an account as a non-performing asset (NPA), will boost the morale of employees, according to the India Banks’ Association (IBA). At present, different banks are following different procedures for conducting staff accountability exercise. Also, staff accountability exercise is being carried out in respect of all accounts which turn NPA

“This approach not only affects staff morale but also puts a huge strain on the bank’s resources. While punitive action need to be taken against the officers having malafide intent/involvement, it is essential to ensure that bonafide mistakes are dealt with compassion,” per the IBA statement.

It said that when the country is in need of an economic boost, slow credit delivery is a matter of concern and needs to be addressed.