Saturday, 28 May 2016

Why PSB's will never perform well..

I was working as a Credit Manager in a PSB. A Chartered Accountant by profession, trust when I say I was really good at my job. Yes, I was. But during my tenure in the bank, I realised I performed worst throughout. All the loans which I was sanctioned from my desk were for douche-bag and scam organisations. Why? Because of the boss! Of course! The red tapism, ji huzoor culture is so much in vogue in PSBs that even though an individual is a fraudster, top management will provide loan for kick backs. 

I left the bank with a broken tinted glass. I always believed things could change, the banks could really perform well. But when you enter the arena you realise a kaleidoscopic portfolio of PSBs, 90% of the loan are given to people who do not deserve it and rest to people who would not need it. Moreover, daily we read about bad loans in the newspaper, which will continue it future, because there are only dirty loans in the bag. Things are hidden under the carpet and top management would not like to show it as NPA during their tenure! Because financial performance would be mapped in his tenure. 

The approval and due diligence is relied only on the papers and in many cases on the photocopies or doctored papers. When someone tries to investigate the authenticity, he is asked to release funds soon for meeting a target. Once it turns out bad, the same individual is asked why the lacuna in due diligence. The shady performance which we read in the newspapers is just a tip of the iceberg and many enchanting window dressing still helps to keep the pubic away from the true picture.

PSBs are indeed in vicious circles with no proper solutions and only common man's money in doldrums

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