Chief Vigilance Commissioner( CVC ) wants Banks to follow rules while sanctioning loans and this remark has come in the backdrop of arrest of Syndicate bank CMD who took bribe for enhancing credit limit of an account not running satisfactorily. Though the advice of CVC has, prima facie, nothing adverse but does it not sound like that the most of the loans are sanctioned without any due diligence and credit appraisals leading to more bad loans? How many top desks of banks have so far been arrested? And one single fish makes the water stink adage is being applied and entire banking industry is being painted with the same brush. But what I want to say is why not any of the government machineries, be it CVC RBI or any other come up with a stern warning that defaulters whether wilful or otherwise will have to face dire consequences if an account turns bad? Why so much sympathy with defaulters in the guise of global meltdown, week economic scenario or situations beyond the control of borrowers? When a banker can be questioned even for his bonafide commercial decision which may prove otherwise in due course and account turns bad without an iota of sympathy then why cant a borrower be made to go through that same trial? In my entire banking career I have not seen any strong words from any authority targeting defaulters. Every time a scapegoat is found in a banker for account turning bad and defaulters are allowed to enjoy the assets carged to banks. Until and unless the vovernment and its agencies come out this LOVE with borrowers cum defaulters the NPAs of the bank will contiue to skyrocket and bankers continue to get lynched. For me its not the bankers who are in COSY RELATIONSHIP with borrowers rather its other way round and its government who is in that relationship. Do I need more than a Vijay Mallya to give weight to my contention leading to its vindication?
Posted on: Mon, 06 Oct 2014 07:21:21 +0000
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