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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