Saturday, May 24, 2014

Is there any professionalism in Banks Boards?


Banks' Boards are the major NPAs is not a great news. If Board Members  discuss taxi fare reimbursement more than the recoveries of loans, it is also not a shocking news.Board members can discuss only what they are familiar with and routine matters. When many of the Board members introduce NPAs in banks how can they discuss about the recoveries seriously. Their interests are also on tours, enjoying VIP status, hospitality and Gifts. When no accountability is fixed at Board level and when strict procedures are not adhered to for appointment of Board Members, how can there be professional approach in running the banks? Many of the Board members have no expertise on running the banks, no knowledge of economy and Finance, no knowledge of importance of fast growing technology and mushroom growth of bank products and various instruments of risk controls etc is a ground reality and many manage to be on the Board of PSBs through poltical and other high level Contacts and their Contribution is to share the loot with the borrowers they introduce to banks.Except professionalism, everything else is practised is known to all banks and the results are there for all to see and feel.

Dr.T.V.Gopalakrishnan

(This comment is published in Business Standard agiant the Article Banks Boards are NPAs )

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