One cannot cure disease merely by applying ointment on the skin until they purify and modify the system, bring about u-turn in HR management, avoid direct recruitment in higher scale, and identify experienced officers who have been rejected in Interviews by officers of vested interest.

 Abolish Interview system and ensure time bound promotions to motivate and judicious award to senior officers,

 Don`t humiliate seniors by forcing them to work under juniors, inculcate work culture and avoid flattery culture, stop visiting branches and offices just to deliver lectures and punish officers who are constrained to spend lacs of rupees from bank account to extend red carpet welcome to visiting officers,

Those who deliver good lecture are not always good for health of bank.

Unfortunately banks have gone in the hands of a few executives who have acquired talent in delivering good speech but who are corrupt in their action.

Flattery to big bosses occurs only in India, not elsewhere in the world. Interview system has been abolished in many central government offices; stagnation word is removed from Central pay rules. Inculcate work culture like private banks.

It is shameful for 100 year old PSBs that in less than two decades business of private banks has gone higher than that of many PSBs and customers preference is not PSB but ICICI, HDFC or Axis bank. This should be clear indicator of some fault in HRM. Whimsical powers of transfer and promotion has adversely affected the work culture and it has gone worse than what existed before 1980.

If you do not believe on what has been said above you may compare the business profile of pre-nationalization, post- nationalization and post reformation and draw results to bring about positive change. Prosperity of any organization depends on pleasure index of workers and customers. 

It is not pay structure which can create devotion and loyalty to the organization. Had pay been real motivator, PSBs would have remained in better position than private banks because average pay of employees of PSBs is little more than that of private banks.

I therefore always say that flattery culture has spoilt health of banks in public sector , also in all other government offices. BSNL and Indian airlines are facing the same sickness compared to new generation telecom companies and private airlines.

Ministers like flattery and money and hence they do not like poor and honest persons, they too like rich and corrupt who can earn and share their ill earned money with government officials and politicians.CBI and CVC all are victim of flattery culture. Good performers are allwhere sidelined and isolated from mainstream and hence all PSUs are almost sick.

Discard flattery and keep away flatterers, if you want to make your organization strong enough to compete with global giants. Otherwise you will like MMS and his team also prefers FDI for survival of the economy. Indira Gandhi became victim of flatterers and MMS along with Sonia is also suffering from same disease. This is why, India as a whole is rated worst on corruption index by Transparency International. Image of the country is getting eroded year after year only due to all pervasive flattery culture.