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Otherwise how can it be explained that Nationalised Banks today accumulate NPA to an aggregate of Rupees One Lakh Crores, despite awakening to this threat and trying counter measures from 1992 onwards? How Institutions like New Bank of India, United Commercial Bank, Indian Bank etc. are allowed to perish or diminish and seek the benevolence of Government of India for their continuance and for putting them back on track. How Nationalized banks have turned empty pillars of growth, without stability, leading to strong sentiments being expressed that denationalization steps are urgently needed. A Nationalised bank can show good profits, and can also capitalize substantial portion of the earned profits, as it is under no compulsion that it cannot please its only shareholder without declaring adequate dividends. It can capitalize substantial profits, build reserves and thus ensure capital adequacy But growing NPAs arrest these opportunities and cripple their risk bearing capacity. How fast the Nationalised banks witnessed their initial growth and branch expansion. Urban oriented young graduates accepted to settle in distant and remote villages and made rural banking their career. The green revolution in India was ushered after nationalisation, so also the white revolution giving India the status as the highest producer of milk in the world. But is the NPA revolution the ultimate step to undo nationalisation? Bank men accepted all national and social responsibilities, but do we lack personal integrity? Is it not possible to secure corruption free atmosphere in a Public organization? In my opinion it is possible as long as the majority of Bank men are honest, though dumb and inactive. But one has to wake up to do anything positive. And if everyone is to think that some one else will do this, no one will be doing this. A few requests I will like to make to RBI, CVC and the Inspecting staff of Banks. Reserve Bank of India: I sent 18 complaints against the Southern Zone of OUR BANK to the RBI in 1981. But the RBI absolved its responsibilities by simply forwarding them to the chairman of the Bank. The effect of this was that nothing worthwhile by way of investigation or follow-up. My action only recoiled on me and face consequent ire of the authorities. When the chairman himself is interested in those who are responsible for misconduct there is no easy safeguard or in-built anti-corruption machinery to check the malaise. Had RBI, effectively or independently acted on my complaints in 198l, much of the devastating effects on the branches of the Bank in the south and large scale effect on the careers of the officers of the Bank in this part of the country could have been averted. Serious complaints on the working of banks received by the RBI should be investigated by an independent outfit, outside the preview of the chairman of the bank. Central Vigilance Commission the CVO of the CVC has an advisory role, but is effectively controlled by the Chairman of the bank. The agency despite its sincerity and commitment is ineffective without the willing and principled cooperation of the chairman. When this is not present, as it happens in most cases the CVC confronts problem of accessing the core areas of corruption. These are screened and kept away from the CVO. CVO is presented only what can be called a tip of the iceberg. In the year 1999, for example OUR BANK has referred only 65 new cases to the CVC for I stage advice (as per statistics in CVC Website), but the Bank issues several hundred charge sheets every year and several more lapses remain hidden without any action. Out of 65 cases referred 25 were listed as minor inquiry cases, representing insignificant lapses. I may in particular point out:
Some stray charge sheets against me were referred by our Bank to CVC. It may be 3 or 4 in all. Out of the two charge sheets at the end, the charge sheet relating to Mysore was not referred, but the charge sheet relating to Tilak Nagar was referred. I represented and tried for a fair inquiry through the CDI of CVC for this enquiry. But I could not get the benefit. At that time Mr.S.V.Giri was the Commissioner, CVC. He was an able officer of Andhra Pradesh cadre of I.A.S. Officers. When I was making social lending programmes of micro-credit large scale under government sponsored schemes, Mr.Giri for a short tenure happened to the Commissioner for Social Welfare in Andhra Pradesh Government, and I had had interactions with him in the course of my job. Mr.Giri also underwent the Sr.Executive programme at ASCI and I also met him at that place. Today (at that time) I am before CVC an accused officer. I chose not to seek for personal interview to represent my case, but submitted through mail a brief gist of a number of reports of cases investigated by me to highlight the underlying rut that was setting in OUR BANK at the top. It was a feeble voice. To me as to my feeling it had no effect. I do not know how the references were disposed of. It is possible if a reference is made to CVC about me, they may give stained picture of me. If this happens I will say it is not only my misfortune, but also that of the system. Today if CVC gives credence to this preface, I can even now submit material (mainly oral), i.e. names several officers who were in any way connected with my investigations and are aware of the reports. Most of these officers are now independent, as they have retired from bank service. CVC may not be able to get most of the reports from the Bank. This is my impression, knowing as I do, how old records are managed in branches, and head offices. But many commissions and omissions of the top management can be established. The dead accounts cannot be erased from the bank, and these are still 'living' in the NPA chronicles of the Bank. As regards internal inspection of the Bank, there is training for officers to conduct audit of the branches based on a rear view approach. They look to the effects and not start from the causes, in a sequential study from beginning to end. It is an after event wisdom, when one searches for the faults. This lends subjectivity to the inspection. 'Something has gone wrong, and who is responsible' is the approach. The returns and statements as at the date of the audit is taken initially for scrutiny and those accounts, which are irregular on that day are further probed and discussed with reference to the irregularity. In respect of the 52 accounts in Shadara region, I followed a top to down or beginning to end approach. How the borrower first entered the Bank, who did what thereafter chronologically, what omissions were noticed in each process at each sequential step to logically link the cause to the subsequent effects or irregularity that resulted in the end. CBI officers follow an objective approach to investigation, but they lack expert knowledge on banking procedure and concepts. Bank inspectors, while knowing the subject lack investigative talents. My purpose in writing this treatise is to stir the conscience of my fellow Bank men. It is time you wake up. Do not allow the spark neglected to burn our house. If you are vigilant, nationalized banking is not lost. There is much more for the majority to benefit from an honest environment. It is a small vicious minority than profits from a corrupt atmosphere. Workmen comrades do not spare corrupt officers. This is needed if you want your Institution to have real growth and you are to get further prospects. Officer friends expose corrupt managers. Manager brothers do not leave corrupt regional managers and all above this line go scot-free. Fight for you genuine needs. There are, as Mahatma Gandhi expressed enough resources in this country to cater to everyone's genuine needs, but not their greed. Those in the age group 30-40 have a life's stake in the future of the Institution. Do you aspire to move up further before your retirement or do you allow yourselves to stagnate and expect for one more VRS to be declared? If you are not alert, no CVC, CBI or any other machinery can be able to weed corruption from our midst, excepting touching the fringe of the problem and keep the pot boiling. I hope the few chapters I am narrating here will make my message louder and provide you with adequate resources to fight against corruption in public institutions and bring in the cleanliness and sobriety in the august portals of Nationalized banking and to step it back to its path growth and stability. My ambition was to start with a literature useful for bank officers on departmental enquiries and disciplinary proceedings sharing my own experience on the subjects for more than two decades. But before searching for a cure or medicine, it is more appropriate to learn about good health and hence the beginning with 'Integrity in Public Life & Services. Let us bring probity and honesty back to the saddle and do away with departmental enquiries, which today engulf the environment and arrest positive human resource development in banks. Connected Reading |
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