Frauds, Failures and Bad Banking Decisions

Gyan Management Journal
Year: 2016 (Jan-Jun), Volume: (10), Issue. (1)
First page: (90) Last page: (94)
Online ISSN: A/F
Print ISSN: 2250-348X

Frauds, Failures and Bad Banking Decisions

1Director, Gian Jyoti Institute of Management and Technology, Phase 2, Mohali 

Corresponding author email id:

13 Mar 2016

15 April 2016

Online Published:
21 May 2016

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The Supreme Court’s observation on February  9, 2016 (slamming bankers and the RBI for  loan write-offs), while hearing a 13 year old  case involving HUDCO, reveals an insensitivity  to the essence ofbusiness and banking.  First it was the courts, then the Parliament’s  standing committee on finance and now the  Central Bureau of Investigation (CBI). One  hopes it won’t be the Comptroller and Auditor  General (CAG) next. We are referring to the  regular public bashing of bankers and the  Reserve Bank of India (RBI) for the steep  increase in bad loans. But it is important for  the courts, investigators and public auditor to  understand that the rise in the number and  amount of bad loans was largely on account of  the exuberance in global and Indian markets  from 2004 to 2008 and the equally steady  economic downturn from 2009 till date.


Supreme Court’s , RBI , HUDCO , Parliament’s , (CBI)