Are we serious about fixing rut at PSU banks?
So, a 162-page internal report, produced by PNB officials tasked with probing the fraud, lays bare lapses that go far beyond a few branch officers. The report lays out how failings by 54 PNB officials - ranging from clerks to foreign exchange managers, and auditors to heads of regional offices, allowed the fraud to be perpetrated. Eight of the 54 are among those who have been charged by the federal police for their roles in the scandal.
The unearthing of the fraud in January has not only exposed shortcomings in the management of PNB, but has also undermined confidence in India’s state-run banking sector, which controls over two-thirds of the nation’s bank assets.
The damning conclusions of the report stand in contrast to the lack of regulatory action taken by the authorities since the fraud was reported. No penalty has been imposed on PNB as a result of the fraud and there has been no senior management shake-up.
Significantly, they said one of the reasons the fraud went undetected for years was because of lapses within some of the bank’s critical areas at its New Delhi headquarters, such as its credit review and international banking units.
“There was enough evidence to suggest failures,” the team of four senior PNB investigators said in its report. “It was observed that blatant system violations/unethical practices/dereliction of responsibilities led bank to such a catastrophe.”
What if half of the PSU banks of India have such systemic rut going on??? more
The unearthing of the fraud in January has not only exposed shortcomings in the management of PNB, but has also undermined confidence in India’s state-run banking sector, which controls over two-thirds of the nation’s bank assets.
The damning conclusions of the report stand in contrast to the lack of regulatory action taken by the authorities since the fraud was reported. No penalty has been imposed on PNB as a result of the fraud and there has been no senior management shake-up.
Significantly, they said one of the reasons the fraud went undetected for years was because of lapses within some of the bank’s critical areas at its New Delhi headquarters, such as its credit review and international banking units.
“There was enough evidence to suggest failures,” the team of four senior PNB investigators said in its report. “It was observed that blatant system violations/unethical practices/dereliction of responsibilities led bank to such a catastrophe.”
What if half of the PSU banks of India have such systemic rut going on??? more
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This proves my thesis that problems with PSU Banks ( incl. The State Bank of India ) is not for NPA but for NNPP (Negative and Non-Performing Personnel). Transfer is not at all a punishment for such criminals, not even jail. Only solution is to recover at the minimum 5 times of the loss involved . If not recoverable, the Jail Term should be rigorous imprisonment , wages earned during imprisonment also should be forfeited. If no asset is found his/her name, assets of his all family members are also to be likewise treated. more
Sep 26
The recent frauds in the banking industries are due to involvement of top officials and due to violation of RBI norms and inspecting official remarks. more
Jun 21
THE CORRECT ACTION THIS GOVT. SHOULD TAKE IS " SUSPEND ALL THE 54 PNB OFFICIALS WITHOUT PAY AND PERKS " THAT HAVE BEEN CITED AND LISTED. CONTINUE THE PROBE IN A TIME BOUND MANNER AND BRING THE FINAL LIST OF OFFICIALS FOR TRIAL. LET THIS BE A GOOD LESSON FOR ALL THE PSU BANK OFFICIALS AND BE A STERN REMINDER THAT THE " UPA RAJ " OF BANK OFFICIALS UNDER THE PATRONAGE OF POLITICAL BIGWIGS WOULD NOT WORK IN THIS NDA REGIME, UNDER THE LEADERSHIP OF NARENDRA MODI. more
Jun 21
They should all be transferred to far off places from their native places and no promotion till finalisation of the cases. more
Jun 24
राष्ट्रीयकरण समाप्त करना कोई समाधान नहीं है - मै भी सेवानिब्रित बैंक अधिकारी हूँ और जिस दबाव मे हमे काम करना पड़ता है उस दबाव पर कभी कोई बात नहीं होती है - छेत्र के सांसद और विधायक का दबाव छोटे स्तर पर तो वित्त मंत्रालय एवं अन्य मंत्रालयों का दबाव ऊपर से होता है जो सिर्फ राष्ट्रीयकरण के वजह से नहीं है -इन दबाव का असर होता है की बैंक शाखा के प्रबन्धक को उनके RM/GM का दबाव आता है की या तो संस्तुति के साथ ऋण प्रस्ताव भेजो नहीं तो ऐसी जगह स्थानांतरण किया जाएगा जहां पानी नहीं मिलेगा तब एक सोच पैदा होती है की जब गलत ही करना है तो यूं ही क्यूँ ?और इसके बाद भी जब वह अधिकारी प्रमोशन के इंटरव्यू मे जाता है तो यह कहा जाता है की यह है वह अधिकारी जो अपने महाप्रबंधक की नहीं सुनता है यानि कभी प्रमोशन नहीं ? PNB के जिन कर्मचारियों की बात हो रही है वस्तुतः वे तो सिर्फ मोहरे है असली खेल तो महाप्रबंधक और उसके ऊपर के स्तर का है पर कौन लिखेगा इसलिए सही जांच करानी है तो जांच उस अधिकारी/मंत्री की होनी चाहिए जो इन ऋण खातो से जुड़े थे । समाधान सिर्फ यही है की संसद मे सिर्फ ईमानदार जाएँ जो वर्तमान संसदीय एवं चुनाव प्रणाली मे संभव नहीं । more
Jun 20
Denationalization of PSU banks (rather any other PSUs) is not a SOLUTION AT ALL... Corruption and mismanagement are rampant in private sector also, including multi-national Corporates.... more
Jun 20
