Every bank has been using various tools to hide bad debts to protect guilty bank officers and to shield bad borrowers. Restructuring of bad loans or the culture of evergreening of bad loans to show it as standard advance is a deep rooted culture in all banks.This culture of window dressing is not new in any bank. For decades bankers are using art of hiding bad debt to make their balance sheet shine as also to get quick promotion and safe retirement.
If government wants to keep banks healthy, they will have to inculcate a habit of carrying out forensic audit of each bad debts account instead of trusting blindly on false and unconvincing reasons submitted by top bankers for bad debts. Banks are in habit of protecting seniors and making juniors scapegoat for bad advances although each high value loan is sanctioned by top bankers and by bank board .
RBI will have to audit honestly. They had during last two to three decades almost stopped auditing and monitoring banks. Absolute freedom to top bank officers is root cause of evil culture prevailing in all banks.
Every bank has formulated merit oriented promotion policy to choose deserving candidates for key posts but unfortunately officers with flattery and bribery culture are only given preferences in postings as well as in promotions.
CVO and CVC are silent spectator because they are also chosen from group of corrupt bank officers. RISK OFFICERS posted in various administrative officers are mostly those who are weak, inefficient and unskilled in lending and who can act as puppets of top bankers.
Ombudsmen are those who are Ex_bankers and who can provide protecting to bank officers not banks.
Advocates pleading bank cases in courts are victim of bribe offered by defaulting borrowers. Bank auditors are those weak officers who can remain silent on bad debt and project good picture of each branch in shortest period of audit. Values of property are assessed by those who can inflate value of assets as per need for sanctioning a loan. And so on.......all are borrowers friendly and very few rejected officers who really worry for safety of banks fund . Majority of officers work to serve self interests.
Government will have to strike at root cause of bad debts, otherwise they cannot stop creation of bad debts in future too. They will have to focus on quality lending and stop giving importance to quantity and target oriented lending. They will have to instruct banks to stop doing non banking activities like insurance and mutual fund businesses and give full focus on banking job for which they are meant to. They will have to provide full safety to bank officers who are working as branch head or who are assigned key post so that they can take decisions without fear of any repercussions. They will have to ensure that legal and administrative machinery extend full support to bankers in recovery of bad loans. They will have to stop culture of bribery and flattery at all levels if recruitment, posting and promotion.
Government will have to stop political leaders who interfere in lending work of banks for vote banks and who make promise for waiver of bank loans. Culture of loan melas for achieving targets forces bank officers to compromise with lending principles. Announcing loan waivers from time to time for vote bank destroys recovery culture and forces good borrowers to become bad borrowers and seek relief. It gives temptations to bankers to earn illegal money in sanction of new loans or in compromise settlement of bad loans with bad borrowers and that of loan waivers.
Loans and charity are two different acts and government will have to stop distributing loan as charity. They will have to stop inter bank competition to attract loanee from other banks by sacrifice of interests of banks. There should be uniform loan policy and uniform interest rate structure as per priorities of various states and various sectors. And so on......
Andhra Bank posts standalone net loss at Rs532cr in Q3FY18 vs. net profit of Rs56.7cr yoy .
Bank of Maharashtra Q3 net loss widens 3-fold to Rs596 crore
Bank of Maharashtra’s net NPAs too rose to 12.17% of the net advances by end of the third quarter from 10.67% in same period a year ago
Union Bank posts net loss of Rs 1,250 crore for Q3.
UCO Bank net loss widens to Rs 1,016 cr
SBI reports Rs2,416 crore loss as bad loans surge
IDBI Bank pares loss to ₹1,524 crore in third quarter
Bank of Baroda net drops 56% as bad loan provisioning surges
Central Bank of India reports standalone net loss of Rs 1664.22 crore in the December 2017 quarter
Bank of India has reported net loss of Rs 2,341.20 crore for the December quarter 2017, against profit of Rs 107.72 crore in year-ago.
Nine of the 21 public sector banks, including IDBI Bank and Indian Overseas Bank, reported losses during 2016-17.
*Complete n Final Q3 Result 2017-2018 of all 21 PSU Banks in (Crore)*
Eye Opening Results.
*PROFIT*
*PNB - 230*
*BOB - 112*
*Canara - 126*
*Vijaya - 79.5*
*Indian Bank - 303*
Total Profit-850
*LOSS*
*SBI - 2416*
*BOI-2341*
*Syndicate - 870*
*BOM - 596*
*Andhra - 532*
*Union -1250*
*UCO - 1016*
*CBI - 1664*
*IDBI - 1524*
*OBC - 1985*
*UBI - 637.53*
*Corporation - 1240*
*Allahabad-1263
*P & S Bank -258*
*Dena -380*
IOB-971
Total Loss-18943
Final Comulative Q3 Result of 21 PSU Bank 2017-18 is a net loss of 18093 Crore.
Eye Opening Results.
*PROFIT*
*PNB - 230*
*BOB - 112*
*Canara - 126*
*Vijaya - 79.5*
*Indian Bank - 303*
Total Profit-850
*LOSS*
*SBI - 2416*
*BOI-2341*
*Syndicate - 870*
*BOM - 596*
*Andhra - 532*
*Union -1250*
*UCO - 1016*
*CBI - 1664*
*IDBI - 1524*
*OBC - 1985*
*UBI - 637.53*
*Corporation - 1240*
*Allahabad-1263
*P & S Bank -258*
*Dena -380*
IOB-971
Total Loss-18943
Final Comulative Q3 Result of 21 PSU Bank 2017-18 is a net loss of 18093 Crore.
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