In banks and other government offices, only those officers who has some Godfather at higher level controlling offices can only prosper quickly and reach up to top post. This is why I use to say top bankers are almost bad bankers. It is only bad bankers who know how to speak, how to attract bosses, how to please top bankers, how to please ministers, how to keep happy banking division and how to show attractive balance sheet. Only manipulation masters and hard core liars can survive with dignity in banks.
Officers who can lend to big but bad businessmen and earn a lot of gifts in cash and kind can only please his bosses and can go up and up in his career and get cream posting .Now slowly bad effects of lobby banking is getting exposed and one after other scam is coming in news. But who will cure the real disease, only God knows. Because all are birds of the same feather.
Here it is necessary to make it clear what is lobby banking. All corrupt officers use to have some connections in all controlling offices who take care of all his evil works and save him in time of crisis. Such corrupt officers have strong lobby at top level offices that can manage even RBI, Banking Division, CBI, vigilance officials and as a result they can get rid of punishment when their evil works are exposed by inspecting team or by aggrieved public. Even courts are in modern days used to get safety from immediate punishment. Rather I will say court cases are used not to award justice but to perpetrate reign of injustice. Such officers contact their own lobby members to manage promotion in promotion processes and also manage posting of his own choice.
Loans given by banks (particularly by PSU banks and star performer banks) to every sector become bad in a year of two or maximum five years. It is not that the policy of lending is bad but it is due to the fact that men chosen for lending and men sanctioning loans are bad,.
In banking prior to reformation i.e. prior to 1991 loan accounts used to become bad at least after a gap of 15 to 20 years and that too in unison with growth cycle of uptrend, stagnation and downtrend in business. In modern days banking, Managers are chosen not to make good lending but to earn money through lending and please higher bosses.
That is why these days lending is done not for making bank profitable but to make a few individual wealthy and that too in the name of reformation and liberalization or in the name of achieving the target. This is still a fact that there are many more snakes hidden in many pockets of banking and slowly they will come out to bite the system or to bite the gang of corrupt and top bankers who are master in creation of NPA. As a matter of fact Non performing officers have become top executive by virtue of their master in art of building lobby and their master degree in manipulation of facts and figures and hence Non Performing Assets in banks are growing fastly and coming out of hibernation.
In government offices at least promotions take place as per seniority, but in banks promotions are based on the whims of top bankers. This is why culture of flattery is more prominent in banking than in other government offices.
I am submitting some of the recent developments taking place in banking which substantiate my apprehension expressed a few days ago that banking shares are likely to fall.