The FM has taken a right stand. The Syndicate bank bribery case does raise questions about both the integrity of the credit-appraisal processes within banks and the quality of governance and supervision. The formality of credit appraisal is well-established. All banks have some objective and transparent formula to score loan proposals on a variety of risk parameters. Committees at different levels are supposed to minimize individual influence on specific decisions. Despite all the paraphernalia of objectivity, these and other cases suggest that the process is vulnerable to manipulation. Bribes are paid precisely because the payers believe that decisions can be swayed in their favour. What about the role of the boards of the bank , that should be brought under scrutiny. Even if they cannot see bribery, should they not have pulled up managements for making loans patently below the minimum thresholds set by the banks processes? What role does play Vigilance deptt. in every bank? So long appointments of executives and board would be made on extraneous considerations are than abilities, integrity and firm convictions of developing belonging to the institutions, this would be the routine state of affairs. Many would come into light, if Probe is conducted in big tickets advances .
Posted on: Mon, 11 Aug 2014 02:38:32 +0000
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