Thursday, June 19, 2014

Bank's Board is not above board.

How to empower the Banks' Board? The Government's nominees have their own agenda. The RBI nominee can be easily silenced by the Government Nominee. Other Directors are there at the mercy of the Government's and RBI's nominees. Chairman is always at the disposal of all Directors. Besides these, the political masters have their own agenda through all Directors. Persons without any proven caliber get into the Board through contacts and all sorts of influence. Being PSBs, accountability is seldom fixed. RBI has an inspection and its findings are mostly on the analysis of balance sheets which is always fudged using all possible  accounting gimmicks with the help of Chartered Accountants and auditors.Board is not above Board is a fact known to both the Government and the RBI. The tax payers and depositors have no say in the appointment of Board of directors and they generally bear the brunt. Board of directors and indisciplined borrwers enjoy merrily. The game goes on. 

Dr.T.V.Gopalakrishnan 

(This comment is given in response to an article on the subjet in Business Standard).

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