Banks have resorted as usual to large scale window dressing towards the end of the Financial yaer 2015 to enhance the balance sheet size and cover up non performing loans. They canvas heavy deposits through some undesirable and unethical means and this can be easily be verified by a deeper analysis of loan books and expenditures incurred by banks. They sanction certain fresh loans and purchase some cheques and bills to clear off some bad loans, increase the loans and create deposits. They have umpteen ways of doing creative accounting practices and the Chartered Accountants who are finally signing the balance sheets knowingly help the banks management to show some impressive performance.The true position should be taken as of February end for a quality analysis and March end figures should be avoided to evaluate banks and Chairman's performance. The reappointment of Auditors and extension of Auditors for another term should factor the ways the auditors have resortd to window dress the balance sheets of banks. They are covering up the true financial position and wrongly impress the government, Regulator, the shareholders, their own associatin, the share market operators, SEBI, and whole lot of banks good borrowers, depositors and employees. Banks have been doing this for decades and RBI's efforts to prevent them from Window dressing have absolutely no impact. They repeat this year after year merrily and even the rating agencies do not view them critically is a sad commentary.
Dr.T.V.Gopalakrishnan
(This comment has been given to BS)
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