Normally, Ponzi schemes happen in mobilisation of deposits. Sometimes, banks evergreen their loan accounts by sanctioning higher amounts to defaulting borrowers. PNB has now raced far ahead of other banks in running a Ponzi in fraudulent loan accounts.
The Ponzi is supposed to have started in the year 2011 and the balloon burst in 2018. For seven long years, unauthorised SWIFT messages emanated from the Brady House, Mumbai Fort branch of PNB. Each message guaranteed higher amount of buyer's credit than the previous message. This bank was the topper among all Indian banks in reporting total quantum of frauds in 2017. But, in the number of frauds, it is not even in the first five. The bank and its employees really think big!
PNB is the only bank in India where the Chairman and Managing Director have the same name, Sunil Mehta. This coincidence, of course, means nothing. But these days, the bank's SWIFT messages also mean nothing. They are unauthorised.
PNB has spawned a few innovations. Loan applicants have the option to ask for loans via CBS or CBS-sidestepped loans. In grand old days, banks used to boast that they had secret Reserves and therefore, their financial position was stronger than what was suggested by their Balance Sheet. Now, PNB has come up with secret loans!
P.Chidambaram keeps saying that credit offtake is poor indicating that GDP is stagnant. He is wrong. He has not taken into account secret loans.
Yesterday I was getting introduced to a stranger. When I told him that I had worked in PNB, he withdrew hastily.
The Ponzi is supposed to have started in the year 2011 and the balloon burst in 2018. For seven long years, unauthorised SWIFT messages emanated from the Brady House, Mumbai Fort branch of PNB. Each message guaranteed higher amount of buyer's credit than the previous message. This bank was the topper among all Indian banks in reporting total quantum of frauds in 2017. But, in the number of frauds, it is not even in the first five. The bank and its employees really think big!
PNB is the only bank in India where the Chairman and Managing Director have the same name, Sunil Mehta. This coincidence, of course, means nothing. But these days, the bank's SWIFT messages also mean nothing. They are unauthorised.
PNB has spawned a few innovations. Loan applicants have the option to ask for loans via CBS or CBS-sidestepped loans. In grand old days, banks used to boast that they had secret Reserves and therefore, their financial position was stronger than what was suggested by their Balance Sheet. Now, PNB has come up with secret loans!
P.Chidambaram keeps saying that credit offtake is poor indicating that GDP is stagnant. He is wrong. He has not taken into account secret loans.
Yesterday I was getting introduced to a stranger. When I told him that I had worked in PNB, he withdrew hastily.
1 comment:
Literally all systems & procedures failed. This has been perpetrated by a person who has worked for more than 30 years. Less said about the new entrants who does not know systems & procedures. Like Rajini only God can help.
K. Anandakrishnan
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