6,049 Bank officers have been held responsible for NPA accounts, Jaitley said

In written reply, Finance Minister Arun Jaitley said that minor and major penalties have been imposed against erring officials. These include, dismissal, compulsory retirement and demotion.

The government said action has been taken against more than 6,000 officers of nationalised banks last fiscal in cases of lapses that led to bad loans.

“As per the inputs received from nationalised banks, in FY 2017-18, 6,049 officers have been held responsible on account of staff delinquency in NPA accounts…,” Jaitley said.

Depending upon the gravity of lapses, the minister said “minor penalty/ major penalty have been imposed against erring officials” and in all the cases, depending upon the amount involved, CBI and police complaints have been lodged.

Meanwhile, Minister of State for Finance Shiv Pratap Shukla said that no loan account of state-owned banks with outstanding of over Rs 25 crore has been “declared as evergreen” since June 2014.

In another written reply to the lower House, Shukla said as a result of transparent recognition of bad loans, the non-performing asset (NPA) amount of all commercial banks rose from Rs 5.66 lakh crore at end-March 2016 to Rs 9.62 lakh crore at end of March 2018.

 

Since then the amount has declined to Rs 9.43 lakh crore.

He further said the public sector banks have reported a “record recovery” of Rs 60,713 crore in the first half of the current financial year.

This, he said, was double the amount recovered by them during corresponding period of the last financial year.

5 thoughts on “6,049 Bank officers have been held responsible for NPA accounts, Jaitley said

  1. Dear jaitly sir,

    AS PER INDIAN EXPRESS ARTICLE ,WHO LOOTED BANKING INDUSTRY OF INDIA.
    As per RBI data March, 2018
    NON PERFORMING ASSETS (NPA) are as under : –

    1. TOTAL NPA Rs.641055 Cr.

    Out of Which : –

    1.Corporate Industry NPA is Rs.470084 Cr. i.e. 73.33%.

    2. Agriculture Sector NPA is Rs.57021 Cr.
    i.e. 8.89%.

    3. Service Sector NPA is Rs. 84686 Cr.
    i.e. 13.21%.

    4. Retail Sector NPA is Rs.23795 Cr.
    i.e. 3.71%.

    1. CORPORATE LEVEL NPA : –

    Which is mostly 73.33% of Total NPA is Sanctioned by Govt. appointed Board Level Executives to Industry.

    2. AGRICULTURE SECTOR NPA is mostly due to Loan Waiver Policies of the Govt.

    3. SERVICE SECTOR NPA is mostly like MUDRA LOANS ,where Govt. bars BANKs to take Collaterals. Hence BANk can not Recover & the loanees happily defaults . Hence New Mudra NPA is increasing day by day.

    4.RETAIL SECTOR NPA : –
    Only NPA where a Common Branch level Banker make ,Sanction loans
    in the form of Housinng, Car, Personal Loans etc.

    “NOW QUESTIONS COMES HOW 10 LAKH COMMON BANKERS ARE RESPONSIBLE FOR ALL NPA & BEING OFFERED ONLY 2% OF SALARY HIKE.”

    ” IS IT JUSTIFIABLE AT ALL ? ”

    Sangeeta Vaidya
    National Reporter
    Nagpur, Maharashtra.

  2. Staff Accountability in Banking Industry*

    This is something very peculiar in banking industry. Nowhere on the earth, anybody follows a procedure like this.

    A doctor makes an error – he is not punished!

    Higher court reverses the judgement of lower court, will the lower court judge is NEVER asked to explain!!

    Even CNC machines have errors in their outputs. Every manufacturing unit has margin for error. It is taken as a part of operational expenses. Even an ATM, computer, machine fails.

    Then why an officer in Bank is expected to be 100% accurate, each and every time!

    Then can a human being, who is filled with emotions, feelings, pressures, priorities not err?? Should there be NOT an in-built protection??

    Now let us see the situation in Banks. Business of the banks doubles every 10 years, but staff strength halves! New initiatives. Tighter controls. A branch gets at least 10-15 reminder calls.
    Supervisors and monitors are more in numbers than workers!!
    More Directors than the Actors!!

    Technology has become villain. Enables quick, tighter controls. But does not reduce the work.

    Too much pressure numbs the thinking capacity. Targets and humiliation when not achieved pains the officers. Many, driven to wall, go for sub-prime business, which again results in NPAs and accountability.

    Vision of trade union in banking industry should be to have a reasonable staff accountability policy, which is very objective in nature. In every lending there will be skips and aberrations.

    Due to inadequate human resources, these are bound to occur.

    Skips and aberrations should not be treated as lapse, unless they are the very reason for account going bad. [ A best example – in one housing loan NPA, a memo was issued for not signing the photocopy of KYC as “verified”. What difference it makes! Had the officer written words “verified” and signed, could NPA have been avoided? Did account become NPA for that reason – No. Then how can that be a lapse?. Another example, Stock Statement for Oct not obtained. But subsequent months obtained. This is stated as lapse. Will this make any difference?]

    Another point – staff accountability exercise. The gentleman who goes to study staff accountability, becomes a Sherlock Holmes, a Police Inspector. Instead of applying principle –“ had I been there, what I would have done”, tries to dig out. Thinks that each lapse pointed out is his trophy!!

    To sanction an advance, officers would have taken processing time of 10-12 hours concurrently handling so many business and transactions with divided and fragmented attention. There is a stipulated timeline to sanction loan. But for accountability study, there is no timeline. One can work on that for days and weeks, exclusively for this purpose. So skewed a system in banking indsutry!! Provide more time to conduct staff accountability than to sanction the loan itself.

    Unless, all within the system, take a practical view of the circumstances and stop catching each other, this situation will not improve.

  3. I think politician will be permanently barred when they indulge in corruption. And when any case filed against him. Stop their salary pension other remuneration and benefits when they do the wrong thing. Now these politician trying to show that every NPA in banking industry due to negligence of Bank staff and the borrower is neat and clean. They are not able to make a law who Stop people to cheat the bank. Rather these politician humiliate the banker. PLZ do the action in right direction not against the innocent bankers who fulfill all the target alloted by you and management. PLZ reply Mr. Jately.

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