Excerpts from D K Jain blog about lending scam in Banks: .......any comments.... Here I would like to submit one illustration of bank loans. Big amount of loans are sanctioned usually by a Regional Head or a Zonal Head or ED or CMD and only small amounts of loans are sanctioned unilaterally by a Branch Head. When CMD or ED accepts some bribe or extraordinary gift in cash or in kind for him or for his friends and relatives, he will make a phone call to Zonal Head or Regional Head . As soon as phone call comes, entire work force in Regional Office and Branch become active and loan proposal is prepared in such a way that higher office sanctions the same without raising any eye brow or without asking for reply on any query. This happens in the same way when party High Command or PM or nay ministers desire any work to be done or any contract work has to be allotted to any contractor.All rules and laws may be violated by subordinates when instruction orally pour in from top bosses . Juniors are always ready to honour all wrong or right orders in fear of action in way of transfer or rejection in promotion process. If any Branch official or RO officials submits negative points of the proposals and incorporate some financial and factual reality which may cause hurdle in sanctioning, they are fired and threatened on phone to modify the proposal suitably and if some dare officer does not listen to their advice , he has to be hanged , he has to be transferred to the most critical remote place or he has to be rejected in promotion or he has to be trapped in any false and fabricated case in the same way as Mr. Khemka is being served one after other charge-sheet by Harayana Government. Similary ,on the contrary if any CMD or ED or GM or DGM does not want to sanction a loan forwarded by RO or a Branch of a bank or when they do not get any personal gain from such sanction they will not hesitate in raising hundreds of queries which may not be replied by a simple Branch official without inviting any repercussion from top officials.You may term this culture as reign of terror or culture of flattery and bribery. But such thing happen usually in all offices and all government departments. When above loan is sanctioned and after a year or two the same loan goes bad, the accountability and responsibility will be fixed on junior officers. CMD or ED who were fully instrumental in sanction of loan to bad person will be nowhere in blame list and will be awarded with several prices for loan growth in that bank. When high value loan is sanctioned , credit goes to top bosses for credit growth and when loan is declared as bad , subordinates are accused and punished .
Posted on: Mon, 27 Oct 2014 14:09:46 +0000
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