Turbulence in the Banking Sector

With more and more skeletons falling out of Indian banking sector scams cupboard, bank customers are on the edge of the seat with respect to the security of their investments with banks. Detection of a series of frauds from PNB-Nirav scam hitting a few other banks as well to UCO Bank loan fraud to Oriental Bank of Commerce loan fraud and to ICICI Bank-Videocon loan controversy has built up thick dark clouds of uncertainty in the banking horizon. The banking sector is already bruised by the havoc contributed by Vijay Mallya, Lalit Modi and the likes. The already grave situation has been further worsened by the aggravating bad debts position with NPAs showing no worthwhile signs of decline.

The involvement / alleged involvement of none other than the bank’s chieftain and other senior executives and officers in some of these gross irregularities and the inability of the banking regulator in curbing such incidents and coming out with some more robust surveillance mechanisms and in arresting the menace of loan delinquencies are as baffling as they are disappointing.

What the nation anxiously looks forward to at this juncture are the measures emanating from the central bank to cure the banking sector of the serious ailments it is suffering from and the punishment meted out to the culprits including the bank officials.