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NPA - Will Level of NPA Increase In Forthcoming Quarterly / Annual Results?  Are Culture of Gifts and Flattery Real Causes? 


Danendra Jain <>


Within a few days and a few months banks will publish their financial results for the half year, for the quarter ending December 2010 and finally for the year 2010-11.


One or two banks in Public sector will adopt online technology to declare their actual bad assets which were hitherto willfully concealed by corrupt executives of the bank.


But result of a few banks will be enough to indicate the extent of sickness growing in Public sector banks. RBI and government of India will no more be able to make excuse of global recession or bad monsoon for level of Non Performing Assets (NPA) reaching to alarming position. They cannot save their face when NPA level in banks is doubled or tripled in coming half years.


Times has come when media men, rating agencies and financial analyst as also Chartered Accountants will be exposed because it is they who are depicting banks as shining and growing. 


Now it is the duty of Banking Division, RBI, CBI, Vigilance Department and all other controlling offices to identify the corrupt executives in such banks who promoted culture of gift ( cash and king ) based lending, gift based promotion and gift based banking. Only the officers who flattered big bosses, earned money through bribe and shared with bosses and indulged in reckless lending could get better posting and timely promotion. Branch Head who could earn money through bribe in lending could bribe government officers to mobilize bulk deposit could be elevated to higher and higher level superseding all talented and devoted honest officers. 


Now the time has come when government should prepare a list of executives (at least Regional Heads or Circle boss or Zonal heads) of banks who has contributed maximum NPA and whose ill-motivated management, negligence and deficient monitoring caused loss to bank.


Now ľa-days bank officers need not be bothered of monitoring of their core assets as much as they need to be bothered of polishing of their bosses. Culture of flattery which was prevalent in all other government offices before banking reformation (since 1991) has taken strong roots in banking too. Now the position of banks has become so much critical that even its survival is at stake. 


God knows how long government of India will keep banks alive on ventilation of infusion of capital in PSU banks. But it is very much sure that PSU banks are suffering from incurable cancer.  Who is to blame for such chaotic deterioration of health of PSU banks in general and a few bank in particular where CEO of bank is considered as Star Performer is a million dollar question. 


God only knows the reason for such devastating erosion in moral values of bankers.   But flattery culture is one of the biggest reason for mess in all government offices, banks and insurance companies. 

 (uploaded on 17.10.2010)