4. A New Commitment
As THE CHIEF EXECUTIVES and Chairmen of the Boards of the Banks, you have on your shoulders the difficult burden of leadership in a changing society in which there is a growing gap between economic aspirations and achievements.
I am aware that each of the nationalised banks is a living entity, having its own historical roots. Nonetheless, the structure and functioning of many of the banks need to be reshaped in the new context to serve the objectives of nationalisation. Now that a year is over, I think it is an opportune moment to pause and have a look towards the future with a sense of direction which does not appear either to you or to millions of your clients as vague and which the country too accepts as purposeful and clear.
It is very important that in planning the operative policies and implementing them, we have a deep and informed understanding of the social and economic compulsions of the time. The society wants that a rapid rate of economic growth should be attained quickly and social justice and fair opportunities should be secured for all. If the growing problem of unemployment is to be dealt with successfully, if a steady growth of the economy and perceptible rise in living standards is to be maintained and glaring disparities in wellbeing as between class and class and region and region are to be continually reduced, the rates of both savings and investment have to be stepped up considerably. This is of supreme importance and lies in a field which is very much your own. At the same time, we have to ensure that the fruits of development are not frittered away by inflationary rise in prices. The role of banks in helping to achieve these aims should be more consciously spelt out and clearly understood. Public sector banks are not mere intermediaries collecting people's savings and disbursing credit only to make profits. The quality and dynamism of your efforts in inducing and channelising savings through mobilisation of deposits and utilising them in viable, productive endeavours will be the measure of the success of your banks in subserving our basic social and economic objectives. This will call for a new sense of urgency in your task.