Non performing Assets in Banks

Mr. Raja has resigned after much hue and cry in the Parliament, in print media and on various TV channels. Image of our country is getting tarnished year after year. Our country’s image is assessed by world leaders and this is why our ranking among most corrupt countries in the world is deteriorating.  Mr. Manmohan Singh ,the respectable PM acts only when level of corruption crosses the tolerance limits of votes, common men , media men and when opposition parties come together to dethrone him. Before that Manmohan Singh and his team, his flatterers and his all party workers upto ground level, all enjoy money, accumulate money as much as possible.

Even after exposure of these powerful men like Raja or Kalamadi, Chauhan or his associates, no punishment to any corrupt person is eventually awarded. Rather such tainted high profile persons will be made Governor of a state or President of Country or Chairmen of some body and after some days pulled back to the same post when common men forget everything.. On the other hand a one man committee will be formed to investigate the charges and finally close the matter for ever.

This is our India when high profile person is never punished even if the scam value is worth hundreds and thousands of crores of rupees whereas a simple clerk may be dismissed even if there is a case of fraud or misuse of a few hundred or a few thousand of rupees.Lacs of crores of rupees are blocked in will defaulters of banks, Income Tax Department, electricity department, telephone departments, custom department  and all due to hidden support these high profile persons are getting directly or indirectly from political lobby ruling the country and various states. No action may be visualized against big shots. It is always the poor and middle class government servants who are victimized by the corrupt system.

Most of the powerful persons are corrupt and without this quality anyone cannot imagine to become Minister or head of any department. All officers who are on top and vital posts have to learn corrupt practices to survive in the system. Birds of same feather flock together. Culture of corrupt practice is prevalent in all the departments of the government. Then who will bell the cat? Who will take steps to stop corrupt practice on the ground level? It is not that system is bad but it is the system which Indians have accepted. This is why, persons involved in scam of thousands of crores of rupees is least bothered.

Politicians after exposure of all scam or scandal make very much hue and cry in a dramatic way and then go for hibernation. Before ending the story they constitute a committee to look into the matter. Such committees are also formed in such a way and manned by such a person that even in two or three decades they cannot decide. They are not provided adequate manpower or infrastructure as happens with judges in courts or officials in Vigilance department or in CBI. In this way Pandora’s Box is closed for ever and lost in dark rooms of the offices. As of now even opposition political parties are very weak and hence congress Party is fearless of any reaction and revolt.

If media men are bold, active and honest they can play a great role in exposure and punishment of corrupt officials and MLAs and MPs. As of now the fact is entirely different. Even media men are dishonest and act as blackmailers and negotiator with criminals. They also act as per money they get from corrupt politicians and officers. This is why most of the news on TV or in print media are related to road accidents, rape, murder etc where some money can be earned by media men if they twist the news as per will of the person who committed such crime. However this is also true that media men who are honest do not get desired support and safety from police and judiciary. In fact honesty has more often than not become the victim in the hands of dishonesty.

In my opinion politicians and bureaucrats must be tried under the prevention of corruption Act. If persons sitting on top posts are honest they will never allow subordinates to indulge in corruption. If minister or MP of any area is honest, talented, bold, active, disciplined, clever and fearless, there is no power on earth which can stop him stopping his subordinates taking bribe or commission on any work done by them. On the other hand if a subordinate or junior is honest, loyal and hard worker he or she  cannot compel his boss or MP or Minister to be honest without inviting repercussion, torture , frustration, depression, disturbance in peace and even death in some case either for self or his or her family members. Even judiciary works are affected and manipulated by person who has money or power directly or indirectly. Even police department acts as puppets in the hands of big shots. Then who will save honest persons. Bitter Truth is that position of honest person is always pitiable and miserable.

I therefore feel that , not only apartments handed over to politicians which were  allotted originally to Kargil family members be taken back by the government but all those officers and ministers who contributed directly or indirectly in happening of such ugly work must be punished in 30 days . And then only a message will go among corrupt officials that evil doers are punished. This should happen with all evil doers so that even hard core criminal will give a rethought before opting for an act of crime. Until there is a fear of punishment and humiliation in the minds of evil doers, Indian cannot imagine of getting rid of corruption.

Politicians often talk of black money parked in Swiss Banks but always fail in their exercise to bring back the same in our country because they are not honest in their utterings.They made unprecedented hue and cry before last general election on huge amount of black money parked in Swiss Banks but politicians of all parties became almost silent after the declaration of election result. What they say and what they mean to do is always different. India is still rated rate as one of the top corrupt nations. It is worthwhile to mention here that India is rated as one of the top ranking hunger inflicted state of the world even though Indian leaders claim and feel proud of achieving comparable GDP growth in the economy and said to be decoupled with global recession or global financial meltdown.

 Madhu Koda ex-CM of Jharkhand and his associates could accumulate hundreds of crores of rupees through corrupt means because he knew the power game and corrupt game being played in the country in all the states. Koda is bird of the same feather and he is not new or his case is not an isolated case of corruption in India. Latest story on extent of corruption in CWG is well heard and read by Indians. In fact there is no dearth of cases of large scale corruption, fraud, scam and cheating in our country.

Rulers, leaders , CEO or head of any organization first pull together all his flatters on whom he can blindly rely and throw away all honest persons who can put hindrance in their task of earning or printing money. In this way evil work of the ruler does not come to fore as long as one of the corrupt officers raise ugly voice against the system not because of his sudden thirst for patriotism but due to his puncture the effort of other corrupt person who has been enjoying larger share of ill earned wealth.

As a matter of fact rulers of this country could not stop corrupt practices in the system prevalent in our own country and cold not stop  formation of black money in the country and hence they could not and cannot force foreign country to declare name of Indians who have parked money in Swiss bank. Similarly when investing agencies like CBI, ED, Vigilance, IT officials and other regulating agencies are themselves corrupt they cannot stop spreading cancer of corruption in the Indian body system. And the most vital point is that when rulers themselves are corrupt they cannot endanger their own money parked in either Swiss Bank or in Indian financial and real estate sector.

It is rightly said by the great writer Munsi Prem Chand.

"Jab Rakchak hi Bhakchak Ban jaye to vinash nishchit Hai"

When almost every minister at Center and almost every minister in each State government is indulged in making money through corrupt means, when officers in general are involved in corrupt game played by politicians and when all officers entrusted with the duty of stopping and removing corruption from the system and finally unearthing ill earned money are busy in making money through corrupt means who will make serious efforts to unearth money held in Swiss Bank.

Persons or group of person who have kept their black money in Swiss Bank are none other than politicians and government officers. When top officers and top ministers are corrupt one cannot imagine of businessmen and professionals abiding by Indian rules and following rule of ethics. It is government officers and politicians who make survival of honest service men, honest businessmen and professionals difficult and force them to manufacture black money and share with corrupt officials to live peacefully. Honesty has rather become curse for government servants as well as businessmen and professionals.

Black money is not only in Swiss bank, it is parked in banks in India too. Black money is concealed in form of gold, land and building, apartment, big bazaars, farm houses, private professional colleges and in almost all big houses. Black money is visible to all whose eye is not jaundiced with the decease of black money. Nine out of ten multi storied residential building and commercial complex in Metros and big towns are constructed by ill earned black money only. It is open secret. As such it is not necessary to focus attention on money parked in Swiss Bank and make politics out of it but is more important to focus on black money parked in India and which is visible in India itself.

It is necessary for almost all politician and officers working in government and government departments to introspect and look into their heart whether they are really honest. Politicians in general cannot afford contesting and winning an election without the help of black money received from businessmen and at the same time without the indirect support of controlling officials none of the businessmen can imagine of tax evasion.

Without the support of corrupt officers, none of the contractors in India can carry out their tendered allotted work. More than fifty percent of value of contract work allotted by government to contractors is consumed in distributing commissions to corrupt officers and politicians. Ministers cannot even organize a rally without the financial support from local corrupt officers, black money of rich businessmen and professional.

I therefore feel that work of purification should start from our own land, our own offices, our own banks, our own politics, and our own administrative system. Politicians should stop playing foul game of putting blame always on foreign agencies for every lapse on their part if they are really interested to see India shining.

India must stop flattery culture because this flattery culture is the root cause of all evils. None of government servants can dream of good posting and timely promotion without indulging in flattery to big bosses and powerful politicians. It is therefore necessary to make transfer, posting and promotion fully transparent and remove all bottlenecks which gives scope of whimsical decision in the matter of posting and promotions. It is the need of the hour to punish those who are misusing their delegated powers and who promote flattery culture by taking arbitrary decisions.

CBI, Vigilance department, Band, IT department, IB ,Anti corruption offices ,custom officials  all such regulating agencies which are established for prevention and elimination of corrupt practices should be made more powerful and given sufficient man power to carry out their holy job. Any officers found indulging in corrupt practice in such department should be punished severely without any discrimination based on caste, community or religion.

Political interference in administrative matters, police action and judiciary must be stopped even if for this matter rules of the land are needed to be altered, made more severe and non-discriminatory. Delegation of power in few hands at any levels and in any offices gives scope for corruption and hence the power must be diluted to the possible extent in such a way that it does not cause delay in execution of plan and projects. Officers who misuse power must be punished immediately.

And last but not the least, MLA and MP who rule the country should not be elected by votes of illiterate and criminals but selected from top IAS and IPS officers, toppers of colleges, reputed social reformers, successful bankers, reputed honest businessmen and from persons of undisputed character. System of garlanding and gifting top officials and political leaders as also that of giving red carpet welcome to top officers must be stopped immediately. Practice of spending crores of rupees in inaugural functions or in felicitating top officials or ministers must be stopped forthwith through an ordinance at least for one year to start with.

Judiciary should be provided adequate quality man power so that pendency in court is made zero and justice is made available in shortest span of time to all aggrieved Indian citizen. An environment has to be created in the country where criminals of all nature have fear of action in their mind and in their core of heart.

It is tragedy that in our country police actions in our country is against good citizens and punitive action through court orders is also possible against good citizens. Actual crime doers use judiciary to perpetuate their reign of crime .If this fear of action is ensured at all levels I am very much sure that black money from Swiss Bank or Indian Banks will automatically come on the floor and people will be motivated to use the money for constructive purposed rather than parking in foreign or Indian bank.

Honesty is the best policy has to be proved at ground level. Merit and merit has to be respected in our country if we Indians really want India to grow at grass root level.

GDP growth shown by ministers to International agencies is not at all helpful and pleasant for majority of Indians who are unable to even afford their normal livelihood and manage respectful life.

It is worthwhile to mention here US President Mr. Obama has taken many steps to reform US banking culture taking lessons from 2008 financial crisis. On the contrary our government is still unaware of growing sickness in Indian banks only because we Indian know how to play with data, sink and swim in the sea of data.

When USA, pioneer of reformation, liberalization, privatization and globalization has started revisiting the policy of outsourcing, policy of concentration of power in few hands, policy of complete freedom to trade icons and policy of complete freedom to banking industry so that more and more employment opportunities are generated for US citizens, expenses on executives is cut to size, and corrupt practices in US system is put an end for good and for eve. Why not Indian politicians learn lesson from their masters at least and ensure transparency in all their action and why do they not discard vote bank politics based on caste, community, religion and region is a big question to answer and a big challenge for those whose vision is to see India really shining in the world.

Danendra

Neither politicians nor media men are interested to resolve the Ayodhya dispute. And hence I can say that they are true enemies of Indian peace. It is media men who are fueling the feud between the two communities instead of trying to bring them together and motivating them to respect the judgment of the court. I sincerely appreciate the court which could deliver a judgment at least after 60 years which is balanced and practical to the best possible extent. After all it is matter of faith and respect to the sentiments of the communities. There may not be documentary evidence of existence or Ram or any God.

All are corrupt in the Government .Who will take action and against whom? Politicians normally are busy in making money. Inquiries are set up after exposure but such inquiries seldom result in real punishment to real culprit.

It is not easy to corrupt practices prevalent in Public Sector Banks .Work done through contractors or goods bought through suppliers either through tender or without tender are more often than not of inferior quality, everyone knows it. Until management, government, judiciary, regulatory agencies, vigilance officials, monitoring officials, auditing officials and the concerned executing officials are honest one cannot imagine of punishment to guilty officials or to contractors who use inferior materials in construction works or to suppliers who supply lesser goods and inferior goods and charge high value. Banks therefore cannot stop corrupt practices in contractual work related to furnishing of premises or renovation of bank’s branches, ATM centers or administrative offices, but it can definitely stop corruption involved in its lending business. Though it is not easy to make the system fool proof of corrupt practices but a little effort in this direction may help in reducing the level of malicious lending and in turn help in keeping the NPA level as low as sustainable.

But the task of purification and punishment must start from top officials who support, propagate, irrigate and promote corrupt practices in lending. We have to punish top officials who indirectly or directly prefer commission in bulk lending, who aspire for costly gifts from junior officials on financing made by branches and who desire red carpet welcome is extended to them wherever they visit. We have to change rules and practices which discourage honesty and loyalty. It is worthwhile to keep in mind that top official who are basically corrupt and possess acute greed for money do not leave any witness or evidence which can be helpful in trapping them or which helps in substantiating charge of corruption against them. Top officials manage bribe through a few hard core flatterers in the organization. Such flatterers have strong liaisoning with all high profile personalities in all departments and they can easily manage closure of any file which may go against them and they can shut the mouth of all protestors.

RBI or any other monitoring agencies can at least identify the executive of the banks whose past and present is bad and who are condemned by all. For this purpose they should prepare a list of bad borrowers (NPA) involving rupee one crore and more (to begin with) and try to find out the name of the executives who are responsible for bad lending .There may be cases of account turning bad due to various reasons which are beyond the control of bankers may be ignored, But advances which turned bad due to faulty and malicious processing must be analyzed thoroughly and honestly by a devoted team of bank officials chosen from other banks. Executives who are instrumental in bad lending and still posted at high places send a wrong message down the line. If corrupt officers are promoted and made organizational head or Branch head or circle head in a bank there is no doubt that junior officials will also indulge in bad lending in greed of money and instances of bad advances will increase. In such system good officials are normally shunted in remote and critical areas and ignored in promotion processes.

It is therefore required to know the name of all loans and advances made by all top executives in past ten years and ascertain whether they are still good or turned bad in a few years or even written off by clever gang of General Managers and cleaver board of directors. Serious analysis of bad borrowers will reveal that creators of all NPA accounts are holding top posts in the same bank of have become ED or CMD of other bank. If bad executives are replaced by devoted officers of the same bank violating existing promotion policy or transfer policies I think the level of NPA will come down in coming years. Otherwise the deterioration cannot be stopped and banks have to face serious financial trouble in near future. As a matter of fact dishonesty has become the best policy in all offices owned by the government partially or fully. It is disheartening that even officials who are made for stopping malpractices and for punishing corrupt officials are themselves corrupt. Then who will take action and against whom, only God knows. And this is why it is said that corruption has become the accepted system in India. Problem arises only when there are differences over the rate of sharing ill earned money among the team of officials who promote bad culture or when top officials receive bribe money but fail to extend desired help to bribe giver.

Lastly if there is a will there is a way. If one wants to lower corruption level in any office or government department there are several ways to accomplish the same. If the head is clean, he can at least endeavor in this direction to some extent, but if the head is dishonest one cannot dream of healthy practices down the line. Unfortunately honest officers are very rare and even there are a few they cannot survive and prosper in their career.

 

17.11.2010

                                                                   Dear sir

 your quote on Non performing assets in banks, is alarming and a light on present situation.

I am a borrower from a bank,my account is also a NPA.But to tell you a fact,I am not a

defualter,

my account is deleberatly made an NPA account.Keeping adaquate security account is being 

shown as NPA.It is just to benifit a private party.All is due to currupt bank officials & bank

councils. God save us & our contry.