The Organizations of Bank Officers meeting at Bhopal admitted that in recent time the banking scams occurred due to failure of its system and serious lapse in not being alert.
But the facts that are already before the nation revealed that it was not a failure of system but the bank officers evolved such a system when big industrialists and business were lured to have loans from the Bank and nothing will be disclosed ever and there would no recovery of it.
Out of the total loan sanctioned about 70 to 80 per cent were kept by the bank officers. Now entire amount are being shown as total default and due on industrialists.
Vijay Mallya is a very reputed industrialist of very sound financial position. The banks are showing Rs.9000 crores due on him and Mallya said it was highly exaggerated amount and he had not taken that much of money.
Mr.Nirav Modi and Mehul Choksi are shown of Rs.15,000 crores while they said the dues on them of Rs.5000 crores only. They also said the Punjab National Bank was committed that it would not be disclosed or recovered. This shows that out of total Rs.15,000 crores 10,000 crores were taken away by the Bank officers.
There is so much NPA on banks and huge over due of loans because the bank system was so corrupt that they never bothered to recover it as most of the money were taken by banks officers themselves. It is stark clean that so much sanction of loan money was not failure of banks system rather banking system turned that way. It is outright banking fraud within the banks and frequently such cases are coming to fore.
The bank officers said except India there is no other country having system of letter of understanding and letter of comfort and now it being changed.
The bank officers also said there were 9354 wilfull defaulters in the country and this also indicate that there must the lakh of other defaulters also. The question is why recovery proceedings were not launched much earlier and allowed to mount. The reply is also very clear that bank system became so corrupt that they themselves kept in pending deliberately.