Looting banks and displaying dirty wealth by bigwigs in society

Looting banks through big loans has been going on for decades and the loss on account of bad loans has been borne by the tax payers and the banks stakeholders who include depositors, employees and shareholders. To prevent this loot and to improve the banks credit management system, their balance sheets and also to discipline the borrowers, I did a research and brought out a very practical and easy solution to contain the formation of NPAS in banks .The thesis was well appreciated and was commended for publication as a book and a trial of the suggested model with reference to our banks. The book was published with a forward from none other than Dr C Rangarajan, the veteran economist and present Chairman of PMEAC. The statistical model suggested was experimented on some banks advances portfolio and it proved to be very practical and useful to improve the conduct of credit portfolio of banks and discipline the borrowers without giving scope for any corrupt practices.This had also been published in the book for easy reference and understanding. The solution was appreciated for its merits but as is always the case in our system, discipline is either not wanted or not encouraged because of ulterior motives.As long as the burden on account of bad loans can be easily passed on to innocent stakeholders who do not have any voice to protest no solution would be attempted in our corrupt system. If the bad loans written off by banks particularly public Sector banks since nationalisation of banks in the early 1970s had been avoided and put into productive use which is not that difficult, the economy would have been in a  far superior position than what is today. The loots are going on with the blessings of authorities is a well known secret. The loss on account of bad loans to the economy is something mind boggling and recurring by nature without any incremental benefits to the masses. A sad state of affairs indeed reflecting on the lackadaisical approach to adopt some meaningful  and viable solution.

Dr.T.V.Gopalakrishnan

  

(This comment slightly in a modified form  is published in Money life against the news report  Pramod Mittal spent 60 million Euros on daughter's lavish wedding? that appeared on 10/12/13.)