Sometime after starting to coach bank employees appearing for CAIIB, technically in “General English”, but actually in “Purposeful Correspondence Format”, primarily for retrieving their outstanding –read as Non Performing- loan amounts—, I began to conduct Slide Show sessions at various bank branches in the evenings on BASEL I, the first set of global ‘gold standard’ norms recommended for all banks in the world.

Our daughter (I have no sons, except some among you dear FB contacts!) was still a small girl-and that gave me the fuel for getting ahead with my sessions as a diversion.

The ploy used by most Indian banks—some really small but some really big like toadstools coming up after a rain on the forest fringes! —back then was that they were not bound to implement BASEL norms since it was but a recommendation and from a foreign body of experts. I suspect that this was out of their myopic vision of the future they were running head into with the likes of Vijay Mallya drooling for free funds from unsuspecting banks on the sly!

Absence of internal mechanisms to assess his REAL credit worthiness helped Mallya lay his hands on his unearned millions from as many as 17 banks in this coutnry.

Today, with Vijay Mallya having taught a Delayed-Start India a bitter lesson in embezzlement under Rajya Sabha MP Guise, Indian banks are thinking of going global with BASEL norms.

For your information I am happy to tell you that these norms were drafted in the light of Too Big to Fail banks capsizing in bank runs, through employee misbehavior and improper style adopted for advancing amounts as loans!

BASEL III—a more refined version of the norms that were accepted by many nations in the 1990’s– stipulates the setting up of an Internal Mechanism , fully armed with expert analysts and CIBIL criteria on the loan applicant to properly evaluate every application for a loan and also to go scientifically about giving a score to the person’s real often hidden credit and debit picture.

And that means NO potential defaulter can inveigle any bank into parting with even a cent or a dime!And that customers shall sleep in peace!

Let’s hope that a “Vijay Mallya” pattern white collar heist won’t happen again!

Thank God, the PSB banks in this country are smiling again after the NPA issue is being taken care of ,partly through the Indian Bankruptcy Code or IBC!

May their smile stay!



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