Government is constrained to infuse capital in PSU banks year after year to salvage sinking banks or to boost up their capital adequacy ratio. Even World Bank is contemplating to infuse capital in selected banks in India to strengthen these banks. This reveals that PSU banks are actually growing weakness year after year and their balance sheets are nothing but result of window dressing in the style similar to which Satyam Computers applied to boost up image of the company.
PSU Banks are facing continuous erosion in their capital due to dirty policies of the government, politically motivated steps taken by the government and constraint in implementation of good policies. Inter bank interest rate competition, waiver of loan culture, financing based on political compulsions, constraints in recovery of loan from willful defaulters, undue delay in legal proceedings in want of proper judicial reforms, unhealthy HRD policies resulting in promotion of corrupt officers and demotivation of good officers etc are a few reasons which are causing great loss to banks and which has made the bank’s health poor and ultimately which forces government to infuse capital in banks.
It is to be noted here that when politicians take advantage of public money held in banks by resorting to loan melas or waiver of loan culture, bankers take it easy while lending to public. Bankers too do not hesitate in lending to improper companies and individuals with doubtful integrity just for their personal gain. There is no doubt bankers have inculcated wrong practices of flattery in banks. Executives, Branch heads, Regional Heads, Zonal Heads, EDs, CMDs focus on their personal status , personal earning by way of underhand dealings and indulge in flattery to their bosses, ministers, officers in banking divisions. They do not hesitate in taking malafide decisions just to please their bosses. Financing to wrong persons and taking gifts or money in return has become a common feature in banks at all levels.
If bankers do not earn illegal money they cannot please their bosses, government offices and even their juniors. Such honest officers cannot dream of promotion and good posting. As such earning money in credit delivery and sharing the same with bosses has become inevitable for survival in banks with dignity. Those officers who are not versed in this tact or modern art of survival or those who protest wrong financing are either posted at remote places or punished. Such genuinely loyal officers can never imagine of promotion or good posting. This is the main reason that bank officers holding key posts indulge in corrupt practice without caring for health of bank’s assets and this is the reason that intrinsic health of banks in general is not sound and banks always need financial support from government to survive.
But the million dollar question is who will bell the cat when Charter Accountant, officers working in rating agencies, officers in vigilance departments, officers working in bank’s own audit offices, advocates, key regulators all are birds of same feather.
23rd June 2010
Wednesday, June 23, 2010
Friday, June 18, 2010
judicial reform and Anderson on Bhopal Gas tragedy
It is not only Anderson only, but all VIP culprits are ignored and freed from clutches of all laws of land. Flatterers in all offices are invariably promoted and given respectable position. Posting and posting also works as promotion and on the contrary promotion sometimes acts as a demotivator. When all flatterers are holding top post anything can be managed on phone and ministers do not required to come in picture. One telephonic call is enough to make or mar one's career and hence every right or wrong instruction from boss is carried out by juniors easily even at the cost of lives of innocent people or safety, security, unity and integrity or even pride of the nation. This is why that even after lapse of 25 years, culprits of Sikh Riots of 1984 and Bhopal Gas Tragedy of 1984 are still roaming free. None of VIPs who were actually master mind in the greatest scam and scandal could be punished; it may be Bofors case, Chara scam, Ruchika-Rathore case stock scam UTI ghotala, stamp scam or any small case of fraud or misuse of HRD policies perpetuated at low level. It is ironical that good persons are made victim for ill works of bad person, it is the saddest part of Indian administration and Indian politics. When courts are incapable and dishonest, the scope of even justice from judiciary cannot be dreamt of.
It is not the systemic failure but it is the system prevalent in India. In India corrupt person get priority in all fields and honest and devoted workers are shunted out or placed at a critical and difficult place. Extradition of Anderson demanded by few politicians is not going to serve any purpose other than an attempt to befool Indian citizen once again. Political parties are blaming each other but none of them appears to be seriously sympathetic towards the pain of common men. We live in a country which is for rich people, by rich people and of rich people. It is rich man’s democracy
Rich and influential people delay the proceeding of court as much as possible to avoid decision and eliminate witnesses so that the case may become weak and ineffective. CBI more often than not weaken the presentation of the case when they get enough gifts in either cash or in kinds from the culprit or they get enough pressure from heavy weights ruling the country. In all big cases of political scam or administrative corruption or any scandal two and three decades are wasted in judicial proceedings in a very easy way and in a very casual and normal way. Indian courts usually deliver justice after two three decades. As such Bhopal gas judgment does not appear that much astonishing in India.
No doubt foreigners laugh at Indian style of functioning in all sphere and fate of big cases involving VIPs of the country. Such cases are either languishing in courts for last two or three decades or in such cases, actual culprits are acquitted or lightly punished.
Even Law minister shamelessly accepts that the justice is not only delayed but buried. Judgment on Bhopal Gas mishap has made it more crystal clear that any Indian cannot expect justice from Indian court until he has money and muscle power to build pressure on advocates and judges. And persons who are having money and muscle power have the capacity to mould the decision in their favour and unfortunately in such heinous task they get full fledged support from politicians, ministers and administrative bosses. Entire talks of judicial reforms going on in political arena for last two- three decades are nothing but Bakwas and it is politicians who are fully responsible for making mockery of Indian democracy as well as judiciary. Even PM admits the cancer of corruption but fail to eradicate it. President of India prefers to be deaf and dump and think it wise to remain silent spectator of Chirharan of Draupdi (innocent citizen) apparently to respect spirit of the Constitution.
It will not be untrue to say about Indian judicial system, that culprits become very happy when a case is lodged against them in any court. Police may be managed with some difficulty and after heavy payments but courts and even CBI people can be managed comparatively easily and comfortably .Judgments can be manipulated in collusion with advocates or heavy weights comparatively easily and more comfortably. Not only this even ruling political party get rid of public protests and hotshots from angry members of opposition parties once they sanction CBI inquiry or lodge FIR in Thana and lodge case in Indian court against any big criminal act or terror act. After all who is bothered of whether such CBI cases or CBI inquiry eventually proves to be futile exercise.
Danendra Jain
17th June 2010
It is not the systemic failure but it is the system prevalent in India. In India corrupt person get priority in all fields and honest and devoted workers are shunted out or placed at a critical and difficult place. Extradition of Anderson demanded by few politicians is not going to serve any purpose other than an attempt to befool Indian citizen once again. Political parties are blaming each other but none of them appears to be seriously sympathetic towards the pain of common men. We live in a country which is for rich people, by rich people and of rich people. It is rich man’s democracy
Rich and influential people delay the proceeding of court as much as possible to avoid decision and eliminate witnesses so that the case may become weak and ineffective. CBI more often than not weaken the presentation of the case when they get enough gifts in either cash or in kinds from the culprit or they get enough pressure from heavy weights ruling the country. In all big cases of political scam or administrative corruption or any scandal two and three decades are wasted in judicial proceedings in a very easy way and in a very casual and normal way. Indian courts usually deliver justice after two three decades. As such Bhopal gas judgment does not appear that much astonishing in India.
No doubt foreigners laugh at Indian style of functioning in all sphere and fate of big cases involving VIPs of the country. Such cases are either languishing in courts for last two or three decades or in such cases, actual culprits are acquitted or lightly punished.
Even Law minister shamelessly accepts that the justice is not only delayed but buried. Judgment on Bhopal Gas mishap has made it more crystal clear that any Indian cannot expect justice from Indian court until he has money and muscle power to build pressure on advocates and judges. And persons who are having money and muscle power have the capacity to mould the decision in their favour and unfortunately in such heinous task they get full fledged support from politicians, ministers and administrative bosses. Entire talks of judicial reforms going on in political arena for last two- three decades are nothing but Bakwas and it is politicians who are fully responsible for making mockery of Indian democracy as well as judiciary. Even PM admits the cancer of corruption but fail to eradicate it. President of India prefers to be deaf and dump and think it wise to remain silent spectator of Chirharan of Draupdi (innocent citizen) apparently to respect spirit of the Constitution.
It will not be untrue to say about Indian judicial system, that culprits become very happy when a case is lodged against them in any court. Police may be managed with some difficulty and after heavy payments but courts and even CBI people can be managed comparatively easily and comfortably .Judgments can be manipulated in collusion with advocates or heavy weights comparatively easily and more comfortably. Not only this even ruling political party get rid of public protests and hotshots from angry members of opposition parties once they sanction CBI inquiry or lodge FIR in Thana and lodge case in Indian court against any big criminal act or terror act. After all who is bothered of whether such CBI cases or CBI inquiry eventually proves to be futile exercise.
Danendra Jain
17th June 2010
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