Monday, October 27, 2014

Corruption In Promotion Process In PS Banks

Why not any of General Manager, Executive Directors and CMD of public sector banks and financial institutes has been suspended till date even though many of them have been found to be involved in Bribe based lending scam exposed by CBI or media or bank staff themselves?


Why properties of corrupt officials of banks who caused loss of crores of rupees not seized till date and how did the get safe retirement during last decade even if they were found involved in bad lending?


 


Why not RBI officials or Finance Minister have been punished for choosing wrong ED and Corrupt CMD for a bank?

Why GOI did not think it wise to peep into promotion process which took place for ED and CMD during last ten years of UPA rule? 






No purpose will be served only by cancelling the selection board if government of India chooses not to punish members of Interview board who violated norms and who for vested self interest decided to chose bad candidate for the top post like ED and CMD of Bank?
 
CMD of Syndicate bank was caught in bribe-lending, CMD of Indian bank, Corporation Bank, Bank of India and many other public sector banks have also been found to be guilty of committing serious irregularities in the past and several others have been allowed to retire from bank safely even if they were corrupt, some of them have been given job in other Financial Institute even after retirement with many records of corruption in the past. 

A few years ago , CBI charged several high rank officers of bank and LIC housing Finance Company of lending huge money to real estate builders after taking bribe. Several banks have been charged of wrong lending in case of 2G spectrum related case .Even Supreme Court has passed adverse remarks against bankers.

If RBI and GOI could have taken lesson from above episodes and took corrective steps in real sense and true spirit , they could have stopped assets of banks moving from good to bad and bad to worse.




Unfortunately they have done nothing in the past in real sense. They only played drama and put carpet on all cases of corruption related to top officials and ministers.
 


In such position how one can imagine that interview processes taking place in these banks for promoting an officer from one scale to higher scale may be true , justified and without involvement of bribery flattery and favouratism.


 


When ED and CMD of a bank are corrupt , it is but natural all processes taking place in respect of recruitment, promotion, purchase of goods and services and sanctioning or
loans are doubtful . Usually flattery and bribery are two keys for an officer to get success in such promotion processes . It is open secret.
 
When top bankers are corrupt there is no doubt that a culture of corruption is wide spread in that bank in particular and in PSU banks in general. Still RBI, Ministry of Finance and government of India as a whole is silent on taking punitive action. It is only because Dirty Ganga emanates and originates from Ministry and RBI only.


 


Had it a been a clerk or a simple officer, top management could have suspended him immediately.

GOI and IBA deny wage hike to bank staff saying that banks have no paying capacity knowing very well that junior staff are not at all responsible for any big loss caused to bank by poor assets. Executives of some banks have also pleaded separate pay revision for executives .


Is Finance Minister not responsible, accountable and punishable for selection of wrong and corrupt ED and CMD for a bank?


Why General Manager rank officers alleged to be involved in corruption and charged by CBI are allowed to continue in their post or even promoted is a million dollar question?


 


It speaks how much deep rooted is the cancer of corruption in the banking system in particular and in government departments in general.


Banks ask for equivalent or even more amount of collateral security and guarantors even for financing a few lac or a few crores of rupees to common business men. But they think it safe to finance hundreds and thousands of crores of rupees to big corporate houses, telecom companies, power makers and distributors, real estate builders.


Why?


Government of India has decided to change the constitution of selection process but has not strike at the root of corruption?
 
Government has not stopped the dirty selection process of promotion going on for a decade and more for internal promotion in these banks.
 
It is the culture of bad promotion and ill-motivated posting which has resulted in current sickness of PS banks.
 
It is the humiliation given to senior officers by promoting juniors based on flattery and bribery which has caused rise in stressed assets to a great extent.


 


Still GOI is silent on this issue though several complains have been sent in last few years to MOF and RBI and several cases have been lodged in various courts of the country. Clever chiefs of banks spend crores of rupees in putting hindrances and delaying judgement from court of law and they leave no stone unturned to ensure withdrawal of cases by building pressure on petitioners and ensure abortion of Justice before it comes from Temple of Justice.



It will be foolish to imagine of reforming PS banks by carrying out little surgery . Need of the hour is carry on thorough scrutiny of all processes and punish the guilty in all cases so that clear message is conveyed to all government officials, bankers and other concerned officials that corruption at any level will not be tolerated.

It must be kept in mind that stray cases of corruption at high level which came to light in last few years are just indicative . Actually there are hundreds and thousands of such cases. By mistake one or two cases of corruption are exposed when the corrupt officer commit some  mistake . Otherwise game of corruption is normally played very cleverly,safely and cautiously. Obviously corruption at top level is all pervasive and cancer of corruption has engulfed entire banking system.
To read full news click on following link

http://importantbankingnews2.blogspot.in/2014/10/selection-of-ed-and-cmd.html

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