Banking Questions

Is there shortage of goof officers in bank that few officers are getting extension after extension for the post of CMD?

You have already seen and experienced how CME of State Bank, Bank of Baroda, Bank of India, Indian Bank, Corporation Bank, Vijaya bank etc have been caught on wrong footing either by CBI or RBI of CVC or by other regulating agencies. Still you prefer praising previous SBI Chief or keeping existing CMD of other banks for undesirable longer period. It is worthwhile to mention here that as per policy of the bank it is desirable that Branch Head of a branch is changed every three years so that bribe led lending or under pressure lending may be minimized.

Is there anyone who can assess the financial data of other banks at least after bitter taste of SBI result and also that of SBI at least now when RBI has seen the quarter four result of state bank of India?

Have RBI learnt any lesson from SBI result or simply given a press release to safeguard its own image?

What corrective steps has RBI taken to stop recurrence of such drastic spurt in NPA or sharp fall in profit in other nationalized banks or in cooperative banks?

It is better known to RBI that legal tools in the hands of bankers are too weak to recover money from willful defaulters.

Don’t you that Regional heads and central heads of banks are getting personal advantage not only in fresh sanctions of loans but also in compromises or write off settlement with willful defaulters?

Have RBI inspecting officials thought it fit to reform their practice of inspection ,introspect to find out why they failed to stop drastic fall in SBI profit and why did they fail to ensure adequate provisioning before new CMD of SBI did. Are teams of Chartered Accountants who certified Bank’s quarterly and annual results in previous quarters and previous years not responsible, accountable and punishable for their fault? don’t you know that it CAs blindly sign on balance sheet of the branches if they are extended red carpet welcome by branch and bank officials and given costly gifts?

Was RBI also involved in process of making of less provision not only in SBI but also in other Public sector banks to give false image boost up to PSBs as also to save its own credentials?

Is RBI willfully giving frequent extension to  a CMD to correct the financial data or to serve the personal interest of particular minister or VIP corporate house?

Do you dream that mere change in data will cure the sick bank and change the corrupt system overnight?

Are you and your officials partner in corrupt system?

Don’t you agree that sudden fall in bank’s profit or sharp rise in gross NPA of a bank is not only the result of manipulation and fabrication of data at one office but sum total of same unethical job carried out in most of the branches?

Don’t you feel guilty that total NPA of Public sector banks has increased by more than 100% during last three years and crossed the level of one lac crore? If hidden NPA is also declared as NPA honestly by bank management, I think gross NPA figure will cross three lac crore mark.

Don’t you know that most of the branches are committing fraud with the CBS system to conceal NPA so that they have to make lesser provisions before finalizing annual result?

Don’t you understand that by concealment of NPA banks are willfully avoiding and postponing recovery of banks amount from selective willful defaulters? Top officials earn money not in sanction, but also in postponing action against defaulters and finally in compromise and write off?

Don’t you realize that PSBs are focusing more on bulk financing ( in hundreds of crores of rupees)such as finance to real estate sector , top corporate house , diamond industry , micro finance institutes to maintain credit deposit ratio as also to reduce gross NPA ratio?

Don’t you agree that proportion of lending by PSBs to agriculture sector and small borrowers is hardly five percent of bank’s total lending in a year?

Don’t you know that GDP growth contributed by Agricultural sector has been coming down year after?   

Don’t you agree that banks are achieving target under priority sector lending and agriculture lending only by reclassifying Non priority sector to priority sector and non agricultural finance to agricultural finance such as treating finance to MFIs as lending to agriculture.

Don’t you agree that majority of high value NPA accounts are the consequence of bribe led lending done by top ranked officials through verbal instructions to junior credit officers and branch managers?

Don’t you agree that such junior corrupt officers are in turn awarded in promotion and posting?

Don’t you know that banks are nowadays picking credit officers as per their whims from the market and keeping twenty to thirty years old experienced officers of the same banks away from mainstream?

Don't you agree that bank officers who have neglected in promotion process and who have to earn under junior executives are not taking adequate care to safeguard bank’s interest?

Don’t you feel moral responsibility that when you choose corrupt General Manager of a bank for the post of ED and CMD of any other bank you give rise to corruption in PSBs? When top ranked officers are corrupt they naturally give recruitment, promotions and posting based on the quantum of gifts they get from field functionaries?

Lastly  I suggest a few answers for your kind consideration:

You have to realize that root cause of all types of corruption in banks and other government department is flattery and bribery based recruitment, promotions and postings and take corrective steps as soon as possible.

You have to inquire why  only a few contractors are given work of construction of order for supply of various inputs are given to same firm or individuals year after year.

You have to inquire who are directly or indirectly responsible for High value NPA accounts and punish them to demonstrate that corrupt bankers are not spared even after their retirement.

You have to punish those bank officers who have contributed only bad loans and finance made by him turned sub standard within a period of one to three years.

You have to punish corrupt vigilance officers who after taking bribe closed the files of corrupt top ranked officers.

You have to punish top executives of bank who promoted unhealthy HR policy by recruiting office in scale III and scale IV in preference to more talented officers having twenty to thirty years experience.

You have to tell the bankers what action you have taken against eight top ranked officers caught by CBI in bribe led lending in various financial institutes such LIC housing, SBi, PNB etc

You should know why banks are unable to afford payment of pension to its own employees.

You should punish CAs who blind certified balance sheets of bank’s branches and by their such unholy certification they  cheated faith of investors .Banks profit fall, their share value fall and it is investors who are to suffer huge loss .

And so on----

RBI can demonstrate their good intention only by punishing bad officers and not merely by announcing one after other policy without ensuring honest execution of existing policies.