tag:blogger.com,1999:blog-6966345738592189918.post1234288656018205372..comments2024-03-29T12:42:47.664+05:30Comments on The Writings of M D Nalapat: India’s next mega scandal: Bad bank loans (Pakistan Observer)Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6966345738592189918.post-75928721730497509122016-03-24T13:52:36.368+05:302016-03-24T13:52:36.368+05:30Dear Mr Nalapat:
Happy to read your blog focussin...Dear Mr Nalapat:<br /><br />Happy to read your blog focussing on a critical issue the nation faces - public deposits misused by the custodians like banks in the name of providing safety and return to the depositors and savers as well as for helping investment and growth of the nation by EFFICIENT deployment of the deposits.<br /><br />But the efficiency expected is sub-par due to the following:<br /><br />1.There is no job insecurity in PSU banks<br /><br />2.They collectively hide mistakes done by their colleagues, and therefore hardly any internal punitive action<br /><br />3.Lack of knowledge and lack of initiative to learn- as job-security does not call for the same - this impacts valuation of securities/mortgages,inspection quality etc.<br />4. Great escapist from trouble and issues and tries taking shortcut by somehow transferring the NPA to DRT or Civil suit.<br />5.There is no penalty on banks for clogging the legal system with suits which can be resolved by sitting with borrowers over the table.<br />6.Banks try blaming Courts and civil authorities regarding delayed justice but they should be taken to task for loading the justice system and leaving hardly any time for justice for AAM ADMI.There is nothing wrong when a DM ask a bank why DM should help as the loan was not given asking first the DM -pl refer to recent widely reported case of J&K Bank and a Civil Servant. <br />7.Crores of dues BY bank to its vendors and suppliers not even reflected in bank balance sheets, as the banks do not even make PROVISION for their dues.Two million(!) recovery agents in this country will vouch for this as banks are sitting with hundreds of crores of dues of these small guys who has dedicated for recovery of bank dues.On one hand they account for the recovery made by these agents as NPA resolved by the banks and on the other hand keeps sitting for settling the service charges of these agents and force them to survive thru unwarranted means!This needs immediate attention.There is corruption even in settling these bills of recovery agents.<br />8.The priorities of PSU bankers are changing - more interest in selling mutual funds and earn incentives and foreign trips rather than stopping slippages in an account.If your salary is Rs.10 Lacs from bank and Mutual fund commission of Rs.10 L from a bank subsidiary,where will the employee focus on?Mind it - if the chief manager manager makes Rs.10L in commission from a mutual fund subsidiary of the bank(???) - there is also proportionate earning for his controlling authority,DGM,GM and CGM.Under such scenario why should one be bothered about NPA, as there is no penalty for creating bad debt on his salaries or commissions.<br />-The demand for ESOP by PSU banks is highly retrograde as this should be addressed only after issues of conflict of Interest of bank employees are addressed.<br />-Wish Modiji's great idea of Jan Dhan Yojna collection of Rs.15,000/-crores were protected by creating Lakshman Rekhas for the bankers not to mis-use and create bad debt further!<br /><br />More later. manojhttps://www.blogger.com/profile/12925365124966222325noreply@blogger.com