Discretion or Discrmination

An open letter to RBI/ Finance Minister/ banking Division Government of India

Are you really worried about health of Banks in India?

Are you really interested to increase lending in rural sector and achieve social inclusion?

If yes,

you should appoint at least 100 teams of honest and sincere auditors, each team comprising of at least three to four people and give them time of at least ten days to audit a branch from all angle of consideration and ensure that they submit detailed report within ten days.

Such report then should be further analysed and stern action should be taken against erring officials, he may be Branch Manager or Regional Head or General Manager or CEO of the Bank.

Audit not for the sake of Audit should be the target.

How deposits are mobilized,
How advances are sanctioned,
How much of advances are real NPA,
How much is really declared NPA,
How much is written off,
How much waiver took place,
Who are responsible for bad advances for last ten years?
Who did not make any follow up?
Who got promotion only by flattery?
Who worked hard and who looted the Branch,
Who performed honestly?
Who indulged in reckless financing?
Who got adequate manpower at branch?
Which branch is working under acute manpower shortage, whether regional head is promoting corrupt practices?
Whether GM is corrupt?
Whether rural posting is used for increasing rural lending
or punishing a non-flatter officer and so on ………..

You may start your investigation from the state of Jharkhand, Bihar, UP …..
You may select five top banks and ten branches from each Bank and complete this task within three months to know the reality of banks.
Are banks in India suffering from more dangerous crisis than sub prime crisis of USA?
Are CAs giving true certificate?
Are audit reports submitted by various internal auditors duly taken care of and erring officials are punished and kept away from promotion and from sensitive posting?
Have RBI auditors portrayed true picture in the past?

You may start with State Bank or Bank of India or Union Bank