To cite a concrete example of the demoralisation has set in in the country can be seen from the way the functioning of The Board for Industrial and Financial Reconstruction of sick industrial companies (special provisions) Act of 1985 is abused.

"The Board was set up 'with a view to securing the timely detection of sick and potentially sick companies owning undertakings and to identify and implement speedy ameliorative remedial measures. Sadly, as with everything above, the provisions of SICA were misused. Clever corporates to ward off winding up petitions and other legal cases pending against them, registered themselves with BIFR, so as to take shelter under section 22 of SICA, which provided a protective umbrella against those cases during period of such registration." (Source "Banking through the decades" by PSV Chari & PS Narasimhan published in "The Hindu Survey of Indian Industry 1999")

It was intended to be brake to curb sickness, but it served as an powerful engine to generate more NPAs. Rightly bankers now demand the abolition of BIFR as one of the remedial measures for arresting further growth of NPAs.

I have created this web site to fight corporate corruption prevailing in public sector banks. I have given material data about such corruption in the chapters describing "My Encounters with Corporate Corruption in my Service". After retirement I have submitted the incidents in seven complaints with complete facts and material evidence to the Bank Chairman though the ED, the highest executives of the Bank. The response - it is obvious - there is not even an acknowledgement. Majority of the officers are not dishonest. By and large the employees are not dishonest. But these employees and officers know, who in their Banks are corrupt and how much corruption is there. If anywhere there is more than 30% NPA, there is high probability of widespread corruption, with the corrupt holding a shield from being detected or punished. But there are NPA points with incidence as much as 70%. I submitted a complaint on Pune Branch of MYBANK in 1994. The complaint was not considered and acted. But the fact is that this particular branch happens to be the leader in terms of largest of quantum of NPA in the Western Zone of MYBANK. The then Zonal Manage of Bombay wanted to act on my complaint, but more powerful executives at the head office thought differently. They chose to harass me for making the complaint.

My recent complaints submitted relate to the Delhi Zone of the Bank. Incidentally this Zone has the credit to possess the maximum NPA within the Bank.

Today government has divested much of the controls, quotas and permits. Quantitative import restrictions have been withdrawn and industrial-licensing systems has been liberalised to a very large extent. Inefficient public enterprises boarding corrupt public servants are being dismantled progressively through the process of corporatisation of public enterprises. The era of maintaining contact men, liaison agents and frequent visits to Delhi for political leverage are things of the past.

Internet has changed our life style. Information about every Government Department, Public Sector Corporation or Public Utility Services are on the world wide web at a click's distance at your desktop. Every citizen has an equal access to information. This has provided remarkable transparency in our administration.

On the other hand industry no longer is pampered and favoured through protective economy. There is free competition not merely at national level, but at the global level. Business and industry have to change their mindset. The environment that was breeding corruption is given a go bye. Tax laws are being simplified and rationalised. Enormous opportunities are invested to the new generation of our young men and women and made within reach through bonafide efforts. Be honest and find your way to excellence. It is within our reach. Or act otherwise and get struck. The choice lies with us, and with each one of us. Reforms will have meaning, only when all of us reform our mindset.

Industry has to compete at the global level and capital has to be sourced from large number of investors at the national or international level. Corporate governance and corporate ethics have become essential for business success and to infuse confidence with the stakeholders. The era of easy profits through questionable ways are now gone bye.

At the Corporate level power and authority have to be decentralised. This is one of the objectives of corporate governance. Everyone must have sufficient power to play his effective role for the fulfillment of the corporate mission, and achievement of the accepted corporate goals.

We have analysed the reforms in more detail. Banks have been freed from all kinds of regulations. They have to compete with each other, public sector banks, new private sector banks and old private sector banks and foreign banks. Government banks have to turn to the market for fresh capital. There can be no more burkha to hide their weaknesses and failure through shady balancing sheeting. BSRB is abolished. Dynamic management of Corporation Bank and Oriental Bank of Commerce have shown the new path of progress through quality in banking.

Dull heads and false pretenders cannot use influence peddling and secure the position as Bank Chairman or Executive Director in the future. The writing in the wall is clear. Either turn a new leaf or get lost. This credit to goes CII (Confederation of Indian industry) to make the bold statement. If unfit to manage efficiently, close them- the three weak banks. There were powerful protests. But the message did have its positive effect. The three banks have understood, that none, not even God will salvage them, if they do not mend their ways and show a turn-about in their performance. They have now declared "We are no longer weak banks and we have turned about".

My web site is addressed to the community of bank officers and bank employees. Do not be tolerant to corruption in your institutions, if you want to salvage nationalised banking and more than that Indian Banking in the coming decades. When you get rid of corporate corruption in your Institutions, you will be able to bring down NPA level, and not until then.

"Any amount of regulation would be futile if an ethical culture of compliance is not fostered among lenders and borrowers, Mr P.S. Shenoy, Chairman, Bank of Baroda, said on the sidelines of a seminar on financial markets. "Pressure should be put on borrowers from peers, society, spiritual leaders and such influential quarters to reduce default and control non-performing assets - an effective tool that was prevalent in traditional money-lending such as hundis," Mr Shenoy said.
[BUSINESS LINE - Tuesday, Jan 22, 2002 Non-Performing Assets - Compliance key for cutting.]