Both the bankers and Supervisors have to understand that banks deal with public money based on Trust and the loot of the money through advances and frauds cannot be TOLERATED.. The deposits and tax payers moneywith which banks particularly Public Sector Banks function, have some sentiments and no one can be allowed to hurt the sentiments by taking away the funds without contributing to the economy and general good of the public.Hope the College of Supervisors being strenghtened by the Reserve Bank will live upto expectations and save the banking system from bad borrowers and fraudsters..The loss to the economy and the general public accruing perennially because of the financial unsoundness of banks is some thing incalculable which needs to be arrested and the banks should be turned into well performing assets by eliminating the non performing loans in their books.
TVGKrishnan
3 comments:
A good article. The crux of the problem is that the mismanagement of by banks by the boards of the banks. If we see the recent problems of Urban Cooperative banks, the NPAs are not an issue, it is the fraudulent transactions by the boards, who are capable of misusing the IT solutions to hoodwink the supervisors. But in the general public an image is given the NPAs are responsible for the recent problems. Unless the Boards are of high integrity then only the problems can be solved.
Very well said. When the top is not strong in Governance ,anything can happen to the institution. Stakeholsers are the government and the general public as depositors and tax payers.
I fully agree with the above commentary. The bank boards particularly cooperatives once have become notorious in their handling of public money.
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