DIARY OF A BANK FRAUD
(Received from a Whattsapp Group...not a fictitious one)
(1) Minister has a talk with Executive Director
(2) ED calls the Chief General Manager
(3) CGM has a briefing with the DGM
(4) DGM talks to the Branch Manager
(5) A Blank loan application is put up. It contains only the Beneficiary name, and loan amount. No other details are
available.
(6) No credit appraisal is done. No unit visit is made.
(7) Loan is sanctioned by a Special Committee or through the Credit Hub - so that no individual officer can be held
responsible if the loan goes bad.
(8) A Manager or Asst Manager signs the loan papers.
(9) The loan goes bad almost immediately after issue.
(10) Additional loans are sanctioned to help the "business" become profitable. (Although there is no actual business).
(11) Auditors point it out. Audit report is put up to the Board, but not discussed.
(12) Next year there is another Audit observation. But auditors are assured that "everything" will be "taken care of".
(13) Next year the Auditors' contract is renewed. The Audit observation is re-phrased as "loan renewed due to system
error".
(14) In the fourth year, the Inspection Team points it out after the loan has become a Loss Asset.
(15) Other related bad loans are re-structured as per the advice of the Inspection Team.
(16) In the fifth year, the Inspection Team finds that the loan beneficiary has vanished, and the company is untraceable.
(17) Head of Inspection Department edits and re-phrases the Inspection Report. He feels that inspectors should focus on
the overall profitability of the Bank and not on the individual fraud cases.
(18) In the sixth year, Inspection Report mentions that adequate Provisions have been made, and there was no threat to
the Bank.
(19) In the seventh year, another Inspection Team finds out that the same loan beneficiary has taken another sixteen
such loans, all of which have gone bad.
(20) Head Office tells the Inspection Team that their findings are inconsistent with earlier findings, and advises them to
re-draft the Report.
(21) When Inspection Team writes the same findings again, they are told that unless they "improve" their quality of
work, they may get transferred to Guwahati and they may find it difficult to even get a promotion.
(22) Inspection Reports are then finalised at the Head Office.
(23) The next year Government changes. The new Minister wants an enquiry.
(24) The Assistant Manager, who had signed the loan papers, gets suspended. (He is assured that he would be suitably
reinstated after the initial storm dies down.)
(25) The DGM gets promoted as GM. The CGM gets promoted as ED. And the ED.....
A true fact and we the field functionaries suffer the most "
(Received from a Whattsapp Group...not a fictitious one)
(1) Minister has a talk with Executive Director
(2) ED calls the Chief General Manager
(3) CGM has a briefing with the DGM
(4) DGM talks to the Branch Manager
(5) A Blank loan application is put up. It contains only the Beneficiary name, and loan amount. No other details are
available.
(6) No credit appraisal is done. No unit visit is made.
(7) Loan is sanctioned by a Special Committee or through the Credit Hub - so that no individual officer can be held
responsible if the loan goes bad.
(8) A Manager or Asst Manager signs the loan papers.
(9) The loan goes bad almost immediately after issue.
(10) Additional loans are sanctioned to help the "business" become profitable. (Although there is no actual business).
(11) Auditors point it out. Audit report is put up to the Board, but not discussed.
(12) Next year there is another Audit observation. But auditors are assured that "everything" will be "taken care of".
(13) Next year the Auditors' contract is renewed. The Audit observation is re-phrased as "loan renewed due to system
error".
(14) In the fourth year, the Inspection Team points it out after the loan has become a Loss Asset.
(15) Other related bad loans are re-structured as per the advice of the Inspection Team.
(16) In the fifth year, the Inspection Team finds that the loan beneficiary has vanished, and the company is untraceable.
(17) Head of Inspection Department edits and re-phrases the Inspection Report. He feels that inspectors should focus on
the overall profitability of the Bank and not on the individual fraud cases.
(18) In the sixth year, Inspection Report mentions that adequate Provisions have been made, and there was no threat to
the Bank.
(19) In the seventh year, another Inspection Team finds out that the same loan beneficiary has taken another sixteen
such loans, all of which have gone bad.
(20) Head Office tells the Inspection Team that their findings are inconsistent with earlier findings, and advises them to
re-draft the Report.
(21) When Inspection Team writes the same findings again, they are told that unless they "improve" their quality of
work, they may get transferred to Guwahati and they may find it difficult to even get a promotion.
(22) Inspection Reports are then finalised at the Head Office.
(23) The next year Government changes. The new Minister wants an enquiry.
(24) The Assistant Manager, who had signed the loan papers, gets suspended. (He is assured that he would be suitably
reinstated after the initial storm dies down.)
(25) The DGM gets promoted as GM. The CGM gets promoted as ED. And the ED.....
A true fact and we the field functionaries suffer the most "
Received June wharsapp
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