Everyday news about GDP growth or bank lending rate comes on TV and newsprint. Chairman of ICICI or HDFC or SBI or PNB or Union Bank whoever he or she may be, they are inclined to give such a statement which suits wishes of government. They are number one yes-men of Ministers and they are invariably surrounded by corrupt and CBI case ridden General Managers .When General Managers are facing CBI inquiry and are not punished by Chairman of any bank it shows how much corrupt and false they themselves are. Executives more often than not, are addicted to speak lie and concoct figure. Therefore if these CEO talks about stable interest rate regime or social inclusion it appears ridiculous and ludicrous. Neither can one believe on statistics submitted by them or bad loans or real health of economy.
Even Chartered Accountants or Credit rating agencies are not doing their job honestly. Based on some statistics or the other they are simply predicting the probable NPA percentage in banks based on some premise or the other. They believe on balance sheet data of last year which I do not believe. . If they look into the books /CBS system of at least five banks in five towns or ten towns in a state say Jharkhand or Bihar and they assess personally without believing any word from banker I think reality will precipitate. But before that rating agency has to learn prudential norms of the banks very carefully and then work for this task seriously at least for three months. I think bad loan percentage will be at least five times of what they are exhibited in balance sheets.
An officer who is not well versed in modern tact of keeping boss happy or not master in cooking figure cannot become executive. An officer who is not tactful in earning money and share with bosses cannot dream of becoming executive. When corruption is at large scale at higher level even CBI or CVC will not pursue the case. Even Ministry of Finance will remain silent. RBI officers and inspectors will submit favourable report.
One can imagine what is happening in a bank where all General Managers like Vijendra, Bansal, Govindan are surrounding the Managing director of that bank and not punished even after various charges. It may be also be guessed who are the God fathers behind such heavyweights .In such sorry state of affairs one cannot dream of good health of bank and neither can he believe on the preaching of these CEOs of the bank. In such bank good officers cannot dream of promotion or good posting. And this is bitter truth that a bank cannot show stable growth without the whole hearted support of field workers. When field functionaries are ingeneral unhappy they cannot be loyal but they can be good flatterer.It is therefore hard nut to crack to assess the real health of any bank.
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Many people have suggested many ways to fight out corruption, many departments have been set up in the country to look into such cases of mal practices and there are CBI, CVC, CID, Police station, public relation offices, Anti Corruption Bureau and many similar offices throughout the country which have been established to fight out corruption. But the fact is that inspite of all so called efforts by government or by all teachings in schools and colleges or all preaching by saints; people prefer indulging in corrupt practices in greed of money and power. For such cases, strict and quickest penalty and punishment is needed without involving the delay oriented processes or two three decades of proceeding in the courts and various linked offices.
It is ridiculous that Government has to prove that Kasab is a terrorist though entire world has seen him attacking in India. Corrupt officers are caught red handed but not punished in India and on the contrary honest persons are punished because they do not flatter bosses. Person involved in big scams and scandals, persons committing frauds and cheatings are not punished for decades together and declared innocent by courts and released by police. Good persons have lost faith in the administrative, judiciary and police machinery. This exhibits the most painful and sorry state of affairs prevailing in the country.
As such to cure cancer of corruption, Government, the courts and the police should send a clear cut message all over the country that they are honest, serious, active, effective not by words but through their action that culprit will be punished, punished and punished without the fear or any repercussions or without looking into any favour or recommendation from any heavy weight from the society.
Million dollar question is who will bring out suitable reformation in the system when even PM expresses helplessness, Pranab Mukherjee Finance Minister talks about fault in delivery mechanism but expresses helplessness. Law Minister fails to bring about judicial reform, Home Minister has got no time to look into this gigantic and Himalayan task, president of India is helpless, and so on
Fact is that there is no will to take action against criminals, evil doers and malpractice perpetuator. If there is a will there is a way. We have seen T N Shesan and we have seen many such IAS and IPS officers who by virtue of their effectiveness have created an image that the criminals leave the district in which such officers are posted. It is true that such officers are unpalatable to ruling politicians and it is also true that such officers has to face frequent transfer, humiliating treatment , rejection in promotion process, posting at the most critical places and so on.
Ruling party may be Congress Party or BJP or communist party or any other regional party. None of the political parties have exhibited their commitment to fight out evil from the society through their actions. Mutual blame game continues in Parliament since the day we got Independence. It is unfortunate that even Parliament and state Assemblies are used in blame game and not in discussion and debate to evolve best strategy to deal with evil forces.
Danendra Jain
Will you please help me and servicemen in general on following points:-
When a bank or any government office is unable to promote an employee due to shortage of vacancies in upper cadre , bank should not stagnate the employee only because he has reached the last stage of his scale .This is a fundamental question concerning all employees who are not getting annual increment only because he could not get promotion in time due to management’s fault or due to corrupt interview panel who promote an employee not on the basis of performance but on the basis of gift or money he receives from the employee.
In this age of flattery there is no respect for policy or performance. An officer is promoted only when he or she has a God father in upper echelon or he has pleased his boss with huge gifts in cash or in kind or bought and motivated the top executive who is a member of Interview panel.
In my opinion there should not be any scope of Interview for existing employee for giving him promotion because quality of his services have already been tested and attested by management for a decade or two or even three.
Even 25 marks allotted for Interview in any departmental promotion processes are enough to make or mar the career of an officer in a bank or any government office. It is a bitter truth of our country that a corrupt officer get 25 out of 25 in interview process whereas a performer get hardly 10 out of 25 which results in diluting the effect of performance of an employee or good marks obtained by him in his appraisals.
This is happening in even government departments and this is why, whenever a new Chief Minister takes charge of a state several IAS officers and IPS officers are transferred from one place to another as per whims and fancies of the ministers in the new government. All decisions are taken on the basis of earning capacity of the officer who can share his illegal earnings with the minister or support the minister in carrying out his illegal tasks for the benefit of his kith and kin or his party men.
In conclusion there should not be any stagnation in any scale of any cadre of any officer of any department or office or bank and there should be no Interview for existing employees to be promoted. In my opinion whimsical posting, arbitrary promotions and abrupt but ill motivated transfers are the root causes of all corrupt practices prevailing in the Indian administrative, judiciary and political system. It is the power delegated to persons sitting at post empowered to take whimsical decisions which irrigates and promotion the culture of flattery and demotivates the person who actually work and believe in honest performance.
It is unfortunate that no remedy can be obtained even through courts even after lapse of a decade or two .This is the reason that management of a bank or any office indulge in selling promotions and postings and in turn increasing the level of corruption.
I therefore request you to file PIL or any suitable court case which can immediately stop unhealthy practices. You can start with stopping the ongoing promotion processes in a bank. I hope you will take the initiative and oblige serving employees of the country.
Danendra 3rd May 2010
A CBI inquiry in the background, performances and loss caused to bank due to these corrupt personalities directly or indirectly in real field of these persons can only reveal the real helath of the bank they are associated with
In the quarter ended June 2010 Indian Bank posted unexpected spurt in NPA, in the quarter September 2010 banks like U Co bank, Vijaya bank and Union bank has exhibited unparallel growth in NPA and in coming quarter many more banks will follow the same way to register addition of maximum hidden bad assets in NPA portfolio to include their bank in the list of worst (hitherto called as best ) performing banks. Government in USA realized the guilt after much damage and Obama openly admitted that banking culture in USA was not as good as it was portrayed by financial experts. Similarly Indian government will also realize after losing lacs of crores in NPA and when most of the banks will face survival crisis. Already government of India has infused lacs of crores as capital in PSU banks to keep them healthy during last one decade.
Now CMD of the bank which has shown abnormal fall in profit and abnormal increase in Non Performing Assets (NPA) should introspect and assess policy of allowing recruitment of direct officers in scale II,III and scale IV and even scale V or VI superseding and humiliating several working officers who have been devotedly working in the bank for last two three decades but who are not having any God father to ensure promotion and good posting .Such high profile CMD and ED should get the work of existing executives assessed from unbiased honest team of officers of other banks and also ascertain how much NPA has been added by existing team of executives only due to their malicious intention. The outcome of such inquiry will make it clear that selection of executives was wrong and judgment of such executives is naturally always ill motivated and against the interest of the bank. Top executives are mostly indulged in corrupt practices and hence there is no doubt that stinking and polluted water is flowing from the top. They allow lending , purchase of goods and services or allow and contractual work only when they get their due share .
It is top officials who have inculcated bad practices in the bank and are mainly responsible and punishable for wide spread frustration and depression in officer community. Employees in general are not interested to give their all to the bank. They think it better to keep patience till the corrupt lobby is exposed or kicked out. “Na Nau Man Ghee Hota Hai Aur Na Radha Nachti Hai” this is why entire talk of growth of Bank appears Bakwas to the banker who works at ground level.
In conclusion one can say comfortably that Nav Nirman is the mask of such Bank but the real story is entirely different. Without stopping flattery culture and without punishing corrupt officer and without stopping corrupt tradition of promoting flatterers using Interview powers, one can change the hoardings, banners, posters but cannot imagine of real reformation. Bank can exhibit lesser percentage of NPA by making bulk advances to corporate but ultimately slow poison of rising NPA will puncture entire strategy of manipulation and expose the real health in near future. Of course it will be too late then and real culprits and gang of General Managers and Deputy General Managers of that bank will get peaceful retirement from the bank leaving behind bank fighting for survival like Satyam Computers. Employees working in Satyam Computers and clients associated with the company are slowly leaving the company and new connections are very limited and that too for short period. Once image is lost, it is hard to regain it and very much difficult to rejuvenate dormant employees.
In the quarter ended June 2010 Indian Bank posted unexpected spurt in NPA, in the quarter September 2010 banks like U Co bank, Vijaya bank and Union bank has exhibited unparallel growth in NPA and in coming quarter many more banks will follow the same way to register addition of maximum hidden bad assets in NPA portfolio to include their bank in the list of worst (hitherto called as best ) performing banks. Government in USA realized the guilt after much damage and Obama openly admitted that banking culture in USA was not as good as it was portrayed by financial experts. Similarly Indian government will also realize after losing lacs of crores in NPA and when most of the banks will face survival crisis. Already government of India has infused lacs of crores as capital in PSU banks to keep them healthy during last one decade.
Now CMD of the bank which has shown abnormal fall in profit and abnormal increase in Non Performing Assets (NPA) should introspect and assess policy of allowing recruitment of direct officers in scale II,III and scale IV and even scale V or VI superseding and humiliating several working officers who have been devotedly working in the bank for last two three decades but who are not having any God father to ensure promotion and good posting .Such high profile CMD and ED should get the work of existing executives assessed from unbiased honest team of officers of other banks and also ascertain how much NPA has been added by existing team of executives only due to their malicious intention. The outcome of such inquiry will make it clear that selection of executives was wrong and judgment of such executives is naturally always ill motivated and against the interest of the bank. Top executives are mostly indulged in corrupt practices and hence there is no doubt that stinking and polluted water is flowing from the top. They allow lending , purchase of goods and services or allow and contractual work only when they get their due share .
It is top officials who have inculcated bad practices in the bank and are mainly responsible and punishable for wide spread frustration and depression in officer community. Employees in general are not interested to give their all to the bank. They think it better to keep patience till the corrupt lobby is exposed or kicked out. “Na Nau Man Ghee Hota Hai Aur Na Radha Nachti Hai” this is why entire talk of growth of Bank appears Bakwas to the banker who works at ground level.
In conclusion one can say comfortably that Nav Nirman is the mask of such Bank but the real story is entirely different. Without stopping flattery culture and without punishing corrupt officer and without stopping corrupt tradition of promoting flatterers using Interview powers, one can change the hoardings, banners, posters but cannot imagine of real reformation. Bank can exhibit lesser percentage of NPA by making bulk advances to corporate but ultimately slow poison of rising NPA will puncture entire strategy of manipulation and expose the real health in near future. Of course it will be too late then and real culprits and gang of General Managers and Deputy General Managers of that bank will get peaceful retirement from the bank leaving behind bank fighting for survival like Satyam Computers. Employees working in Satyam Computers and clients associated with the company are slowly leaving the company and new connections are very limited and that too for short period. Once image is lost, it is hard to regain it and very much difficult to rejuvenate dormant employees.
In the quarter ended June 2010 Indian Bank posted unexpected spurt in NPA, in the quarter September 2010 banks like U Co bank, Vijaya bank and Union bank has exhibited unparallel growth in NPA and in coming quarter many more banks will follow the same way to register addition of maximum hidden bad assets in NPA portfolio to include their bank in the list of worst (hitherto called as best ) performing banks. Government in USA realized the guilt after much damage and Obama openly admitted that banking culture in USA was not as good as it was portrayed by financial experts. Similarly Indian government will also realize after losing lacs of crores in NPA and when most of the banks will face survival crisis. Already government of India has infused lacs of crores as capital in PSU banks to keep them healthy during last one decade.
Now CMD of the bank which has shown abnormal fall in profit and abnormal increase in Non Performing Assets (NPA) should introspect and assess policy of allowing recruitment of direct officers in scale II,III and scale IV and even scale V or VI superseding and humiliating several working officers who have been devotedly working in the bank for last two three decades but who are not having any God father to ensure promotion and good posting .Such high profile CMD and ED should get the work of existing executives assessed from unbiased honest team of officers of other banks and also ascertain how much NPA has been added by existing team of executives only due to their malicious intention. The outcome of such inquiry will make it clear that selection of executives was wrong and judgment of such executives is naturally always ill motivated and against the interest of the bank. Top executives are mostly indulged in corrupt practices and hence there is no doubt that stinking and polluted water is flowing from the top. They allow lending , purchase of goods and services or allow and contractual work only when they get their due share .
It is top officials who have inculcated bad practices in the bank and are mainly responsible and punishable for wide spread frustration and depression in officer community. Employees in general are not interested to give their all to the bank. They think it better to keep patience till the corrupt lobby is exposed or kicked out. “Na Nau Man Ghee Hota Hai Aur Na Radha Nachti Hai” this is why entire talk of growth of Bank appears Bakwas to the banker who works at ground level.
In conclusion one can say comfortably that Nav Nirman is the mask of such Bank but the real story is entirely different. Without stopping flattery culture and without punishing corrupt officer and without stopping corrupt tradition of promoting flatterers using Interview powers, one can change the hoardings, banners, posters but cannot imagine of real reformation. Bank can exhibit lesser percentage of NPA by making bulk advances to corporate but ultimately slow poison of rising NPA will puncture entire strategy of manipulation and expose the real health in near future. Of course it will be too late then and real culprits and gang of General Managers and Deputy General Managers of that bank will get peaceful retirement from the bank leaving behind bank fighting for survival like Satyam Computers. Employees working in Satyam Computers and clients associated with the company are slowly leaving the company and new connections are very limited and that too for short period. Once image is lost, it is hard to regain it and very much difficult to rejuvenate dormant employees.
All are corrupt in the Government .Who will take action and against whom? Politicians normally are busy in making money. Inquiries are set up after exposure but such inquiries seldom result in real punishment to real culprit.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
We have seen downfall in net profit of Union bank, Vijaya Bank, Uco bank, Indian Bank, Federal Bank and now in SBI. These banks have added 7 to 8 thousand crores worth NPA in their balance sheet and they still talk of being star performer. Executive called as ED, Deputy General Manager, General Manager, Assistant General Manager in banks who has contributed crores of rupees in NPA are treated as star performers.
What is reason behind abrupt rise in NPA? Is it not due to the fact that quality of asset in banks has suffered continuous erosion though it has been year after year concealed by talented executives? Bankers have been hiding bad assets for last so many years just to please Ministry and befool innocent public by showing false rise in profits so that their share prices goes up and up like Satyam Computers? But how long? It has to face puncture like Satyam Computers.
Flattery culture prevalent in banks and in government departments including Ministry of Finance has resulted in growth of bad assets and bad man power. Lobby of corrupt bosses is so strong at controlling offices that only corrupt officers are chosen as Branch Heads, Regional Heads, Zonal Heads, EDs and who in turn freely indulge in bad lending .improper waiver of loan, dishonest compromise with so called bad borrowers to earn bribe , buy deposits from government offices and manage their survival. Big bosses are indulged in earning commission not only from their team of corrupt manager but also from contractors, suppliers and what not.
It is true that corruption prevalent in banks cannot be proved because of so many legal hurdles and shortcomings in the system. But RBI or CMD of the bank who treat them as honest and star performer should at least prepare a list of executives who is instrumental directly or indirectly in sanction of maximum bad advances. Borrower wise thorough investigation will reveal the name of corrupt officers and will at least reflect the name of real culprits behind sudden spurt in NPA and considerable fall in profits in banks. It is not that banks who are showing rise in profit or fall in NPA are really healthy but in fact they are master in concealment of bad assets and they are master in manipulation. As such, sooner or the later Indian government like US government has to understand the ground reality. Regulators of banks have to understand why private banks are showing rise in profit, fall in NPA and rise in share prices too.
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