After 43 years of bank’s nationalization and 21 years of adoption of policy of liberalization and reformation launched in the year 1991,our government and our learned Finance Minister has realized for the first time, the bad consequences of imposition of targets for deposit and advances on CMDs of banks. It is undoubtedly and undeniable true that due to unrealistic targets there used to be unbearable pressure from seniors on field functionaries for its achievement.

Due to application of evil ways and means to reach nearer to target and due to unhealthy competitions among flatterer officers in reaching nearer to bosses, officials of banks during last three to four decades has in general lost a lot of its health, accumulated unimaginable volume of bad assets, created a gang of inefficient, non performers but cleaver, flatterer and corrupt workforce and eventually caused huge loss to the bank as also to its culture.

These top ranked officers could get the top post only and mostly by indulging in window dressing during their posting at branches or in the regions and it is they who used to teach same window dressing to their juniors and award only those officers who were clever in following their line of action even at the cost of overall health of banks.

Bank officers who could manage illegal money in sanction of loans or through illegal ways and means could pay bribe in acquisition of deposits and also please their bosses to get timely promotion and best posting.

I feel pleasure that now MOF has wisely and rightly decided to remove deposit and advance target for future assessment of bank's performance. MOF will now focus on profit, growth in Net Interest margin, non-interest income, financial inclusion etc. Of course this will result in healthy growth of deposit and advances also.