pivotal role in bringing about this focus on financial inclusion. 21. i also observe that idbi bank has been unable to achieve the priority sector lending targets and worryingly, its performance on this front has been falling. this is despite the merger of a primarily rural focused bank like united western bank. the system of priority sector lending has been introduced mainly to ensure easier access of credit to those deserving sectors and people, who otherwise, do not receive adequate credit. moreover, rbi has freed the pricing of products under psl ; therefore, banks should not have any inhibition in lending to this segment. please remember that the banks who do not meet their psl targets have to contribute funds to the ridf, the returns from which are quite less bis central bankers ’ speeches remunerative, may be lesser than your cost of funds. the bank also needs to take up financial literacy campaigns to educate the potential customers on high interest charged by the informal credit channels and wean them away from money lenders. 22. i have also observed an increasing trend in the gross npa and restructuring of standard advances in the banks which reflects deficiencies in the appraisal and risk management standards. you have to work with the top management in acquiring the necessary skills and upgrading the credit risk management system and initiate necessary steps to arrest this disconcerting trend. role of employee unions 23. let me now turn specifically to the responsibility that you have, as unions, in ensuring that idbi bank attains its true potential in its role as a full service bank. you must appreciate the new operating environment that exists today and must realize that in this highly competitive market, no longer would the corporate chase you. for most of your members who have cut their teeth in an era when idbi was a dfi with limited competition and a small universe of customers to deal with, the transition to commercial banking might be difficult, but remember, if you wish to survive as an institution in this new avatar, you must be willing to change. what is, in fact, needed is a change in mindset and you, as responsible union, have to oversee a smooth transition among the employees. retail banking is a customer centric business and hence, you would need to develop the passion, compassion and grace to deal with customers. in my opinion, idbi had a great opportunity to leverage upon the relationship it had built over the years with big corporate / public sector enterprises and could have got the salary accounts of staff of these organizations with

, is how to integrate such requirements into the selection process itself so that the most appropriate and not just the best people are selected. ( b ) the second challenge is to meet the growing needs of an ever expanding financial sector. it is heartening to note that during 2009 – 10, ibps would be clocking close to 10 million candidates in screening for various assignments. in a globalised world, everyone would be competing to attract the best people and the requirement is only going to go up. ibps would have to upscale itself with appropriate methodology, technology, manpower, etc. to be able to effectively deliver on its clients ’ requirements. ( c ) the third challenge is bracing for possible competition in future. today, ibps is alone in this field. as the number of institutions and the services desired increases, newer institutions providing similar services may come up. thus, ibps must strive to move up the value chain. it should not only upscale itself but widen its basket of services and engage itself more in newer areas like banks ’ internal promotions and other areas. it should strive for greater utilization of its services so that it can face competition if and when it comes. to conclude, i once again congratulate all of you and your families on this landmark occasion. i am sure that in the years to come ibps will grow from strength to strength and attain greater glory, and the next 25 years will be even better than the past 25! i wish the institute all success in its future endeavours. thank you.