It is easier to summarise what is right with Indian banks than to detail what is wrong . Tragically, nothing seems to be right. SBI, BOB, PNB, Allahabad Bank, IOB, etc., all of them seem to be neck-deep in mismanagement and consequent ill-effects.
SBI has started reporting quarterly loss. BOB has closed its branch in South Africa. PNB has been forced to go to town regarding its incapacity to comply with basic banking requirements. Allahabad Bank is a participant in all big bad loans. IOB is in perennial penury. Banks not named here are perhaps waiting for an opportune time to disclose their distress.
When the entire system is rotten, neither RBI nor the Finance Ministry can escape their responsibility. We do not have a responsible and reasonable opposition party that can pin down the government for its lapses and facilitate remedial steps. In essence, the entire banking system is broken.
According to the theory of Broken Windows, if even a single window is broken in a house, over time, vandalism can be expected. If all windows are broken?
Frauds are committed over a long period of time as in the case of Nirav Modi. Instead of rounding up all perpetrators, we catch only those who are at the wheel when the fraud becomes public. In this game of musical chairs, the borrowers are able to fly the coop because they are informed in advance as to when the music will stop.
It has become the norm for every bank whose mismanagement is exposed, just to brazen it out till another bank gets into limelight for its recklessness. It is a never-ending saga of managerial delinquency and competitive chicanery.
SBI has started reporting quarterly loss. BOB has closed its branch in South Africa. PNB has been forced to go to town regarding its incapacity to comply with basic banking requirements. Allahabad Bank is a participant in all big bad loans. IOB is in perennial penury. Banks not named here are perhaps waiting for an opportune time to disclose their distress.
When the entire system is rotten, neither RBI nor the Finance Ministry can escape their responsibility. We do not have a responsible and reasonable opposition party that can pin down the government for its lapses and facilitate remedial steps. In essence, the entire banking system is broken.
According to the theory of Broken Windows, if even a single window is broken in a house, over time, vandalism can be expected. If all windows are broken?
Frauds are committed over a long period of time as in the case of Nirav Modi. Instead of rounding up all perpetrators, we catch only those who are at the wheel when the fraud becomes public. In this game of musical chairs, the borrowers are able to fly the coop because they are informed in advance as to when the music will stop.
It has become the norm for every bank whose mismanagement is exposed, just to brazen it out till another bank gets into limelight for its recklessness. It is a never-ending saga of managerial delinquency and competitive chicanery.
3 comments:
As u rightly said now because of the untimely death of Sridevi actress the entire attention has gone there.
K Anandakrishnan
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Now u see after PNB lodged an FIR on 01/02 SBI on 14/02 (Valentines day) transferred funds from their Dubai branch to Antwerp to Nirav Modi group. Atrocious.
K. Anandakrishnan
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