Wednesday, May 15, 2013

Public Secrtor Banks, Directors and Corporate Governance


Why talk of repentance in leisure only? The appointment of Directors is at the will and pleasure of the influential politicians and bureaucrats and the considerations are very many better not to be spelt out.The fit and proper criteria based on qualifications, experience, specialized knowledge in the field of banking, accountancy, rural credit etc for appointment of Directors is only on paper and the contacts and connections are the real fit and criteria followed in practice is known to all in the banking system.Corporate Governance is introduced with lot of propaganda and it is practiced more in breach is an open secret.The way loans are sanctioned,accounts are restructured,and bad debts are written off is an established proof that directors on the Board and corporate Governance practices have no role to play in improving the functioning of banks. Banks suffer, economy suffers,depositors suffer,good borrowers suffer all because of lack of Corporate governance and the benefits are enjoyed by Nominee directors and bad borrowers. Some exceptions may be there but they will have their own stories to suppress and suffer.Ethics,honesty and integrity are unfortunately not available in the market and these have to be cultivated by practice,culture and commitment.The present atmosphere is certainly unsuitable for any one to even think of. Better to keep away and suffer all time  and not at leisure.

Dr.T.V.Gopalakrishnan

(This has been published in Money Life in response to the Article Directors of PSBs the Ground Reality)

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