Why the Reserve Bank of India is not put the Sarva Haryana Gramin bank in PCA ?

Why the Reserve Bank of India is not put the Sarva Haryana Gramin bank in PCA ?

Sh Mukesh Joshi, Chief Co-ordinator, GGBWO & SHGBOO moved to CAG, PMO, RBI, and other statutorty and regulatory institution to hinder the highhandedness of SHGB Management who is violating all norms for personal gains by posting wrong information in public domain and hiding the mismanagement and lacklusture SHGB administration
In the last 6 years, the bank showed tax of about 450 crores by showing wrong income.
To avoid the clutches of PCA corrupt,incapable management of the become instrumental in hiding the NPA for their personal gain. The Chairman and GMs came from are posted in the bank which were already chargesheeted or were on the verge of their retirement. They created mess with the connivance of incapable officers of Sarva Haryana Gramin Bank who were promoted. At the time of amalgamation there were 27 branches as SCAlE-4, which were reduced to 10. This is the evidence that can easily prove the poor working of the management.
Just, look at the audited balance sheet of Bank, (copy attached), wherein it is clearly reported as NPA of the Bank as on 31.03.2016 as 328 crores, as on 31.03.2017 as 327 crores, and NPA as on 31.03.2018 as 580 crores and as on 31.09.2018 as 790 croes.It clearly shows the sudden spike in the NPA of the Bank from 2017 to 2018, almost 90 percent rise. Again within six months, the management has shown another 210 cores as bad assets, taking the NPA figures to 790 crores as on 30.09.2018.

Further, as per internal communication within the coterie of the Bank, the NPA figure of the Bank as on 31.03.2019 is around 20percent i.e. Rs. 1700 croes which is again around 3 times the figure reported in the last year and almost 500 percent increase from the Figure reported just 3 years ago.
The bank itself declared in its letter no 2/20(dated 22/01/2020) that there is proposed NPA of Rs. 574 crore. But bank declared only 200 crore as NPA on 31.3.20, thus bank again shielded Rs. About 400 crore. If bank declare rightly bank will be in loss of about 100 crore. The result declared in Balance Sheet is again a another mischievous act of making the authorities and public fool

Actually, these accounts are NPA for last 5 or 6 years, and some were even from last 7 or 8 years; but they were not classified as NPA by the Bank management for their personal gain. Since these accounts were NPA for past 5or 6 years, but not classified, hence the interest charged on these accounts were taken as the Bank’s business whereas in reality, there was no real earning by the Bank in these last 5 or 6 years from these accounts and earning shown by Bank from these accounts were only in books not in reality. But despite these, Bank has paid many hundred crores as Income tax but actually there was no tax liability and it is totally wasted of public money. These accounts rigging was done by this PNB management for their personal gain.

The real motive behind showing the Bank’s in profit was that – when Bank’s are in profit, these GMs and Chairman, who are from PNB, possess immense power and gets many personal benefits which are of individual type in nature; and these powers and benefits stands seized if the Bank is in loss. So, just for the sake of their personal gain, they rigged the Bank’s books, showed the Bank’s in profit, and the irony of the matter is that they also made the auditors accomplice in this act. Of course, auditors must have been bribed substantially to sign these rigged accounts for last 5 years.

Similarly, one more shrewd reason for showing the profit over these years was to keep the recruitment and promotions open in the orgnisation. As per RBI policy, when Bank is in loss,

And one more thing to note about the recent classification of accounts as NPA – As per Banking norms and statutory guidelines of RBI, whenever any accounts are classified as NPA, the derecognised interest amount are to be reversed from the date of account turning to NPA. So, in these accounts interest for last 5 or 6 years are to be reversed; but in reality, Bank has not reversed interest in many of these newly classified NPA accounts which showed the aggravated profit in the last many years. If the proper classification would have been done, the Bank would have been loss for last 5-6 years, and the cumulative loss would have been at least 700 crores.
SH MUKESH KUMAR JOSHI
CHIEF CO-ORDINATOR – GGBWO & SHGBOO