Are banks figures accurate? is always a doubt in the minds of investors, banks auditors, regulators and policy makers. Wait for March figures. All figures will look impressive and their accuracy certified by banks auditors and top Managements. There will be deposit growth, advances growth and decline in NPAs. All banks will be showing profit and risks will be bear minimum on business front. Bankers would become eligible to draw productivity bonus and the Auditors will prepare the Balance sheet as the Chairman and his Executives Desire. The data collection and dissemination is an art in India and the reliability of data was doubted by none other than Dr Subba Rao the former Governor of RBI The window dressing of banks' balance sheet is a feature well established for decades but how the same art is repeated in a computerised environment is a mystery. The ground realities and the data produced by various institutions do not match is a fact and the policies based on erroneous data cannot produce any better result. Garbage in garbage out is what we experience.
(This comment appeared in Money Life dt 21/3/16).
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