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Some Tragedies of Public Sector Banks
Books are audited by incapable auditors, unwilled auditors and greedy Chartered accountants. In India where Chartered Accountants prepare balance sheet of a business not based on real performance in business but based on the need of finance proposed by businessmen, lending decisions are taken by bankers based on rosy balance sheets prepared by such greedy and corrupt CAs.
Banks appoint vigilance officers who are themselves of corrupt background and who get money even in closure of reports against erring officials.
Management of risk is on the shoulders of those who do not know even ABC of practical banking. Credit rating agencies like CRISIL, ICRA ,FITCH etc are charging exorbitant fees because they know the intention of bankers and businessmen who are forced to opt for external rating.
Department of Human resource management is manned by who do not have any idea of managing people and who do not how to encourage work culture. Transfer and promotions take place not as per inherent quality and experience of the person but based on flattery and bribery. Even recruitments are taking place in higher scales from campus where sons and daughters of executives are admitted. Experience of existing staff is no more important in banking. Good looking faces and ornamental MBA degrees are preferred and practical knowledge of existing staff is of significance.
Faculty members in training centers are such who possesses degree but do not have quality to teach. In schools and colleges teaching aptitude is given preference in selection of teachers, but in departmental internal training power point presentation is resorted to impart training.
Credit officers do not understand the pros and cons of financials of any borrower or prospective borrower .Financials of businessmen are given more value than the creditworthiness of the person who are promoters of the business.
Empanelled Valuers are those who value a property not as per market trend but based on fee they are paid. Advocates are those who can give positive legal opinion in respect of even disputed or non-existent land if they are paid fee as per their whims and fancies.
Rating agencies rate a bank based on financials shown by bankers and not in a position to understand what is hidden behind the mechanized system .Bankers believe on rating done by greedy officials of rating agencies.
Officers who do not know much about lending and even common rules of banking and who do not have the art of reading the credit worthiness of a customer are made Branch Head and officers who do not have capacity to lead a group of workers are made Regional Head.
And so on ………………………….
Banks appoint vigilance officers who are themselves of corrupt background and who get money even in closure of reports against erring officials.
Management of risk is on the shoulders of those who do not know even ABC of practical banking. Credit rating agencies like CRISIL, ICRA ,FITCH etc are charging exorbitant fees because they know the intention of bankers and businessmen who are forced to opt for external rating.
Department of Human resource management is manned by who do not have any idea of managing people and who do not how to encourage work culture. Transfer and promotions take place not as per inherent quality and experience of the person but based on flattery and bribery. Even recruitments are taking place in higher scales from campus where sons and daughters of executives are admitted. Experience of existing staff is no more important in banking. Good looking faces and ornamental MBA degrees are preferred and practical knowledge of existing staff is of significance.
Faculty members in training centers are such who possesses degree but do not have quality to teach. In schools and colleges teaching aptitude is given preference in selection of teachers, but in departmental internal training power point presentation is resorted to impart training.
Credit officers do not understand the pros and cons of financials of any borrower or prospective borrower .Financials of businessmen are given more value than the creditworthiness of the person who are promoters of the business.
Empanelled Valuers are those who value a property not as per market trend but based on fee they are paid. Advocates are those who can give positive legal opinion in respect of even disputed or non-existent land if they are paid fee as per their whims and fancies.
Rating agencies rate a bank based on financials shown by bankers and not in a position to understand what is hidden behind the mechanized system .Bankers believe on rating done by greedy officials of rating agencies.
Officers who do not know much about lending and even common rules of banking and who do not have the art of reading the credit worthiness of a customer are made Branch Head and officers who do not have capacity to lead a group of workers are made Regional Head.
And so on ………………………….
Last but not the least, bosses are always right, flattery and flatterry.....................resulted in reign of terror for real performers .........................consequence frustration and depression on one hand and comfortable life for a few top ranked officials...............................officer dies in meeting addressed by top executive in one of nationalised bank last week..................................................one is physically dead , others are always dead ---------------
Read more if you want ------------------
http://dkjain497091112006.blogspot.in/2012/02/tragedies-of-public-sector-banks.html
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