PSU banks crack down on middlemen The recent arrest of the Chairman of Syndicate Bank in bribe negotiation case may have been just the tip of the iceberg. The performance of PSU banks over the last few years has hardly been encouraging; to say the least. And poor economic performance is not entirely to blame! The impact of lending practices in PSU banks is for everyone to see. The RBI has been citing its displeasure with the NPA crisis for a while. However, this is the first time that the chief of a bank has been implicated for involvement in corrupt lending. It seems the middlemen who broker the deal between big corporate borrowers and banks are equally guilty. Therefore to arrest such instances, PSU banks are now cracking down on the middlemen culture as well. As per Economic Times, PSUs like Indian Bank and Andhra Bank have already barred such middlemen from entering their premises including branches. And SBI is fortifying its due diligence process to avoid improper facilitation of loans or loan extensions. These may help PSU banks rid themselves of the corrupt practices for the time being. However, the banks need to have autonomy and adapt more technology and transparent systems to keep a close watch on their asset quality.
Posted on: Mon, 11 Aug 2014 16:57:04 +0000
Trending Topics
Recently Viewed Topics
© 2015