Letter to BS: Investigation agencies should apply operational independence

Apropos your highly balanced editorial “Don’t hound bankers” (25 June), differentiation between “witch hunting” and “genuine mistakes” is not an impossible task. You have drawn the right conclusion to the present controversy when you say that "proper systems must be put in place to ensure that investigations do not degenerate into an ever expanding witch hunt against bankers". Clearly, you can't throw the baby out with the bath water. Even if the agencies have acted in haste and made a mistake in their over enthusiasm, a responsible body like the Indian Banks Association (IBA) should not conclude that the government has started a witch-hunt to harass bank chiefs and, in the process, slow down genuine lending. 

Surely, IBA — headed and manned by very senior bankers — understands this. I think the organisation is playing to the gallery and making allegations where none are warranted. 

Understanding the difference between corrupt practices — a nexus between bankers, industry and politicians — and errors of judgement made by seasoned bankers may be difficult but certainly not impossible. In fact, bodies such as the IBA can help in this task. The bottom line here is: Put in place sound control systems, making sure there are checks and double checks against bypassing the systems, RBI’s alacrity and nimbleness in recognising any smoke signals and acting swiftly. RBI can also encourage bankers with proven integrity to be aggressive in recognising genuine projects and funding these without dragging on the cases. 

Your concluding paragraph about "PSB’s urgent need of governance reforms" is a crucial one. PJ Nayak Committee’s report needs to be dusted and reread for the detailed recommendations it has made after a serious review of the system.

Krishan Kalra Gurugram

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