Public sector banks lagging in risk appraisal skills

Sri G Gopalakrishna...RBI ED

Most banks have identified training gaps in the areas of credit/risk management, agriculture programmes, and foreign exchange, according to Reserve Bank of India Executive Director G. Gopalakrishna. These areas require an equal measure of knowledge of rules, practices and specialised skills for appraisals, on the one hand, and an awareness of markets, on the other, he said while inaugurating the Nitte Institute of Banking and Finance at Nitte University in Mangalore. Banks, he said, require training by external experts and institutions in these areas.

Stating that the training needs cannot be uniform across the banking industry, as each bank has a unique structural make-up of its own with a different set of aspirations, he said: “What applies to a public sector bank may not be applicable for a different skill set present, say, in foreign banks and new generation private sector banks.” Public sector banks have shortage of skills in credit appraisal and risk management, whereas new generation private sector banks and foreign banks have better skills in these areas, he said....Read more >> Click here