Yielding to political pressure from the branch level is limited - used to have the fear of accountability. Some Branch heads may entertain only when the project is viable in all respects. Big loans and consortium loans are being considered right from branch level to top management at various levels inclusive of Board - If consortium all the participating bankers will have involvement - hence the scrutiny used to be more. Sanctions not necessarily be due to political or any other pressures - as every official knows about their accountability.
Cause of NPA: Political/Government's decision is also have reasons. As of date Steel, Power and Infra sector have failed. Manufacturing sector failed and so Export Sector is also affected. For these reasons who else in the Banking sector be complained.
Govt Decision: Example Demonetisation - which caused MSME and small traders. For example in TN alone 50000 units were closed (Report submitted in their Assembly)
To be assessed that which are the sectors affected -reason for that - remedial measures taken.
Legal system is to be strengthened - various organizations like human rights etc influence to be restricted.
These are the guys who had nationalised the banks to bring under their control! They only made the bank employees like pet dogs. You don't have to justify that the politicians are responsible for bank problems!
Yes, when a Bank gives loan on phone of a politician. No, when senior officers collude with businessmen to sanction loan bypassing the rules. In my opinion, the instances of senior officers bypassing the rules are much more than politicians influencing, since businessmen generally like to have clandestine deals involving minimum number of people.
