Letter to BS: For PSU banks, prevention of frauds is better than cure

This also points at a sort of nexus between the erring staff of the lending banks and the loan seekers as was the case with Punjab National Bank

This refers to Anup Roy’s report “PSU banks more prone to frauds, says RBI’s financial stability report” (June 27). There is no denying that most of these public sector banks (PSB) would be found abjectly lacking when it comes to internal controls/audit mechanism, work ethics and professional attitude, besides the near absence of risk appetite (with their hands virtually tied at their backs) vis-a-vis their counterparts in the private sector. No wonder the Reserve Bank of India’s 17th Financial Stability Report of June 2018 goes on to make some highly scathing remarks about their ability to prevent frauds such as