Banks in general have again started concealing
bad assets and the same hiding approach which was applied when the
work of identification of bad assets used to take place manually.
Management of banks in general
have started threatening and using coercive methods to force
branch officials, branch heads, regional and zonal heads and top ranked
officials to stop slippage of assets into NPA category and hence they all
have started using various unlawful tools to keep the account always standard
despite sickness in the account as per RBI prudential norms. They have started
using age old ever greening process to keep all accounts standard.
As a consequence slippage
during last two quarters fell and further due to window dressing
in credit growth as also in provisioning, ratio of Gross NPA and that of net
NPA to total advances have been contained.
Reality of bad assets hidden in
the banking system and reality of lending culture can come to surface only if
hundreds of teams of honest, competent and devoted RBI officials go deep into
entire process and work culture prevailing in public sector banks.
One point to be noted here that due to reign of
terror let loose by top management in almost all PS banks, there is fear in all
field functionaries and there is no doubt that it will adversely affect the
bottom line of banks and there is no doubt that the hollowness of banks and
unattended cancerous disease will finally cause collapse of entire social
banking system in future and lead to growth of private banks and that of
exploiter moneylenders.
To add fuel to fire, banks are not using experienced
manpower to stop further deterioration in bank’s health and rather they have
aggravated the situation by promoting young and inexperienced officers to
higher level and posting them at vulnerable key posts.
No doubt , that health of
officers in banks is also moving from bad to worse and equally that of family
members who are finding themselves totally isolated and uncared .
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