Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 17 April 2018

#NPA #ICICI #AXIS #RBI #CBI


Were  these “   honest  “ decisions  ?



Over the past few years , CEO / MD of leading banks ( both public and private ) , have taken decisions to advance thousands of crore of rupees to industrialists / businessmen



Some Rs 9 lakh*crore of these loans have now turned into NPA and questions are being asked :



  Were these honest decisions  ?  Were these decisions taken without any conflict of interest ? “



Now , we know that thousands of years ago , even Sati Sita’s fidelity to Lord Ram was doubted !



So , no matter how “ honest “ were those decisions by the bankers , public may have a “ perception “ of dishonesty



And SEBI / RBI / ED / CBI / Board of Directors of concerned banks / external auditors etc , have to conduct detailed / searching investigations , to establish the “ honesty “ ( - or otherwise ) of those decisions



That process has to be gone through



But it would have greatly helped those CEO / MD , had they filed an “ DECISION DOCUMENT “ ( one for each loan ), as suggested in my following 4 YEAR old blog ( sent as email to all Cabinet Ministers )





21 June  2014


  
To err is human


To forgive is divine ( provided it was a honest error )


All of us keep making errors , all the time


But rarely same " mistake " twice


Often , decisions taken at a point of time , turn out to be " poor " , with passage of time


Reasons are simple :


*  We never have all the information - relevant to the problem we are trying to solve –
    available with us , at the time of taking a decision


*  Even when most of such relevant info is available , we may not have the capacity /
    competence to " process " such info


*  As humans , we have our biases / prejudices , based on our previous experiences ,
    which influence our decisions


*  Quite often , and often against our own better evaluation / judgement of a given
   situation , we are wrongly influenced by our peers / bosses / subordinates or even
   voters - all of whom have different expectations / vested interests !


*  Additional - and more relevant - information surfaces , AFTER we have taken a
    decision ( happens all the time  !  )


To encourage Babus and Ministers to take FAST decisions , Narendra Modi must insist that they carefully " Record " on the files :


*    What info / data he wished was available for a better decision


*    What different " views / opinions " were presented to him for consideration


*    What " Data / Views " he would have obtained if he had more time


*    Who all , the decision might offend


*    What is the likely " Cost " of postponing that decision
 

And finally a declaration :

*    This decision is not likely to benefit any of my near relatives / friends , directly or
      Immediately



After all of this , if the decision appears to be " Wrong " in hindsight , it must be " forgiven " and treated as an honest error


To err is human  !



=====================================================

18  April  2018




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