'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
It's high time the banks start answering with a honest mind as to why the public are kept in dark? how such loans and defaulters are let run up the dues for such an extent?
Should we have a National External Regulatory Affairs committee that supervises banks given large loans?
Special Bank Internal Governance force should be created quickly by the RBI and the Government to assess the health of the other loans that we are not aware of and if found to have irregularities the companies should be under the watch of the force and the Government. Rules and regulations should be tough and merciless for such scamsters who make the common man look like fools.
At the same time more than politicians, the top officials of the banks are doing more frauds. Whether they have any support from the back side of politicians. But the main issue is with the officials only.How Reserve Bank of India is not able to control the banks from these frauds I am not able to understand. The Audit teams will have at least two trips to the bank in a year. How they are missing so much these points I fail to understand. A strict action on all these corrupt officers should be the order of the day.
Adding, in the context of the news published or shown in few of the news channels & news papers was that the defaulter, Vikram Kothari fled the country was a fake. It's on behalf of the Rotomac Owner which is while reacting to reports that he had fled the country to evade arrest, Kothari issued a statement on Sunday saying he was very much in Kanpur. There is a competition between the channels & the publishing companies for various breaking news & often we are misguided or not rightly informed of the facts. It should also be a concern now because if there is a fake news then should be considered as a scam too.
The greatest wealth in this world is mental peace and good health.
Business targets are fixed unrealistically and without taking into consideration the overall economic situation, the infrastructures,the capacity and adequacy of its personnel. So to achieve the targeted business and to earn name for the top executives and further enhance their elevations to more higher and attractive posts, a lot of compromise is made using the discretion of top management and even board. It can be sen if properly gone into that only top management and/or board level officials are involved in the sanction of such large scale credits.
There may be some who are interested in quid pro quo also, though that is less in comparison. The junior officials who are also overenthusiastic in faster promotions and elevations stoop and crawl to abide by the wishes of top management people.
So after the top person or persons who sanctioned the credit move out such loans and advances naturally slip and go into default because the credit appraisal was not healthy and was compromised. Unfortunately many inexperienced but overenthusiastic junior officials get trapped as the records go against them for overlooking or 'recommendations. Mostly such recommendations are custom worded by the concerned to[p people or those who keep their conscience, but conveyed without record to the originating lower layers.
When a large loan shows signs of default, fearing erosion of business and sudden hit, the officials from bottom to top beg, plead and even further fund the borrower hoping it will help and revive the same. Then they try for One Time Settlement. Sometimes that works. But many times,as the base itself is weak and unhealthy it becomes good money thrown into bad money again.It is this kind of vicious circle that create such great problems.
Banks should desist from the lure of big business. Banks should avoid unhealthy competition among themselves and concentrate only on healthy business. They should discourage OTS, encourage branches and officials showing healthy loan recovery,and punish the branches and officials contributing to bad loans. Target should be fixed only with realistic assessment of potential of the area and infrastructure. Banks should do only proper banking business and not divert their energy and attention in insurance marketing etc.
But I am more interested to know during which period, did the man get the loan? Further, is such a huge amount is required for a pen-manufacturing Company? Did the banks examine this aspect before sanctioning such huge loan to him?
Beware! I question everything and everybody.