Banking - Yojana

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flagged financial liberalisation so
that the impending financial
fragility can be averted. India's
decision not to capital account
convertibility is certainly a right
measure in this direction.
After assessing the overall
situation Reserve Bank of India
should follow the
recommendation of Narsimham
Committee to reduce advance
priority sector from 40 percent to
•10 percent resulting in reduction
in NPAs.Another course has given
positive result to adopt VRS
scheme bypublic sector banks, the
profitability of banks have
increased in half yearly results.
India has accepted the
philosophy ofinternationalisation
of the economy in our financial
sector in which more
competitiveness in global economy
is inevitable. Under the WTO
agreement India has accepted a
proposal for opening eight Foreign
Banks, branches in a city, which
means Indian public sector banks
ha,:e to compete with foreign
banks. Will. these foreign banks
followthe socialbanking objective?
Lack of profit or continuous
losses will ultimately result in
depletion of the capital, which will
prove suicidal to the very existence
of business. Hence profit is
essential for the source of finance.
Profit, in fact, shows the internal
.strength and vitality of business,
profit. in business concern
encourages the habit of saving
among people and investment of
money thus savedin industries, can
alone accelerate economic growth
and development. Profit motive
has made the whole of the
economic system natural in its
operations. A natural operation of
the economic system is the most
desirable thing in the world and it
alone can add permanence to an
..organised human society.Even the
concept of Social responsibility is
not opposed to the concept of
profit maximisation. It simply
insists on purity of means to be
adopted for profit maximisation.
Means should never be exploitative
and anti social. It further believes
that the growth in human
conscience and soci'l-lawareness
exploitative and anti social
methods will fail to maximise
profit. Moreover, the growth of
human conscience and social
awareness should be systematically
accelerated, if need be, so as to
check the exploitative and antisocial
methods of profit
maximisation.
Michael H. Mscon once said "I
have alwaysfelt a profitless business
was not really in a position to be
concerned with the well-being of
society any more than an oxygenstarved
human being could be
concerned with self-actualisation."
Business & profit
Unless your business is able to
make a profit, the problem of
ecology, and environment and
social responsibility, etc. all
become academic. I do think you
have a social responsibility to
Reserves Top $ 56 billion
make a profit so that you can take
care of all these other things and
hopefully we are going to make a
profit and then really function as
creative capitalists. Hence
business and profit are
inextricably woven together and
the profit is to be maximised to
keep the health of business good
and sound.
It may be stressed here that no
institutional b.usinessorganisation
like bank is absolutely
independent. They are integral
parts of the society.The social and
industrial and other structures of
a country are virtually linked with
banks and banks with them. The
maximisation of p;rpfits for bank
~as to have a national upper limit.
That they ,should aspire and
achieve. It may also be provided
out that in a vast country like Iddia
with so much populace small scale
and cott(;tge industries and
agriculture sector are imH