Housing scam and bribe culture

Housing scam which surfaced yesterday and which resulted in arrest of eight high rank bank officials are only tip of the iceberg. Corrupt officers are sitting on top post of each bank and hence they ensure promotion to only those who are expert in the art of earning money and who is number one corrupt. Interview panel in each promotion process gives the scope to pick and choose yesman for branches where some money can be earned. It is not therefore astonishing to me because it is open secret that bribe culture is very much prevalent in most of the branches and most of bank’s administrative offices also. It is to be kept in mind that when , DGMs GMs and ED are corrupt honest junior level field officers cannot survive and cannot lead a peaceful and respectful life. This culture is rampant not only in banks but also in other offices owned directly or indirectly by government.

I would like to request RBI , Government of India, Ministry of Finance and particularly to all responsible officials to prepare a list of NPA borrowers in various segment of amount involved and try to know the person who sanctioned and who failed to monitor and also who supported indirectly from administrative offices in rise of bad assets .Officials who are corrupt and who sits in controlling offices manage sanction of bad advances through Branches and contribute in generation of more and more bad assets known as Non Performing Assets (NPA).


RBI can direct each bank to furnish such information and then RBI officials can make a study of such report to identify corrupt executives. Now a days such information can be generated through CBS without any loss of time and without any discomfort. Even controlling officer can generate such list if he or she so likes. Excel sheet can be prepared very easily on following columns.


1. NPA Account with value involved upto Rs.5.00 lacs (small borrowers)
2. NPA accounts with dues more than 5 lacs to o 50 lacs (medium size borrowers)
3. NPA accounts with dues more than Rs.50 lacs to Rs.5.00 crores (large borrowers)
4. NPA accounts with dues above Rs5.00 crores. (Very large borrowers)

Each segment should contain following columns so that it can precipitate and clearly reflect the name of bad bankers, name of top ranked officers who are real culprit.

1. Name of borrowers
2. Date of sanction
3. Name of Branch head or credit sanctioning officer
4. Name of immediate controlling head called as regional head or circle head or zonal head

If report in above mentioned format is properly analysed and which anyone can select through excel and filter data as per person on all India basis, I hope real face of corrupt executives will be exposed. It means bank should prepare a list of all bad borrowers which have been sanctioned by a top executive say ED, then General Manager, Deputy General Manager and so on up Regional Head and Branch Head during last ten years in whatsoever capacity or post he was during last ten years.
Such list should be prepared for each and every executive in the bank starting from top scale VII to scale I. This will prove and substantiate the doubt that only those who indulged in bad advances and earn bribe could be elevated to higher post. This is why I assert that the person who has created NPA in all branches and Regional Head who selected more and more corrupt branch Manager should be treated as bad bankers.

First make a list of big amount NPA borrowers created by regional head or circle head in India during last five years irrespective of his posting (sanctioned directly by him or through branch manager working under him)’

This will indicate the name of executives who created maximum NPA and prove that such officials are getting fastest promotion and all such people are sitting on top post and hence there is none to punish bad officers.

Such executives have very good relation with top bosses and also powerful persons sitting in RBI and banking division. This is why no action is taken against top officials and in all cases of misdeed junior officers are made scapegoat. Such officers if trapped accidently can manage tactfully even CBI or vigilance officials and ensure closure of files or at least ensure awarding of minimum punishment.

This is why there is dissatisfaction in the branches and administrative offices among junior officers in all banks under public sector. Bank officers are least bothered at field level whether NPA is increasing or profit is shrinking. Clever bankers are always expert in making lame excuses of global recession or bad monsoons or debt relief and so on.

Corrupt officers are quickly promoted and posted at good places in big towns whereas good officers who are serious workers are placed at bad places and in critical branches.

It is therefore dire need of the hour to find out and identify corrupt officers at top level and ensure that they are punished and without which one cannot imagine of NPA coming down in any bank. When top officers will be booked to task , clear cut message will reach upto the bottom level officers and only then juniors officers will desist from corrupt practices and top officers will not post and promote juniors on the basis of flattery or on the basis of golden and diamond gifts they get from juniors.

When bank management can publish the name of bad borrowers in Newspapers, Government of India or RBI or Banking Division in Ministry of Finance can also publish the list of bad bankers. At least thye can prepare a list of such bad executives whose advances invariably become bad and RBI can ensure their demotion forthwith.

Rather name of sanctioning officer and controlling regional head must be published along with the name of each bad borrower published in newspaper. When action can be initiated against borrowers to take possession of assets by banks, why not illegal assets of bad bankers also should be confiscated and sold off before public.

Only a healthy culture in bank can help in reducing NPA percentage and help in becoming top ranked performer bank.. Hitherto CEOs and EDs in banks are showing lesser percentage of NPA by increasing volume of fresh and short period advances or by selling NPAs to Arcs. Days are not far when this manipulative tactics will also fail to salvage banks. It is therefore necessary that actions are initiated before it is too late.