Bank frauds in loan approvals
In the month of March we saw the list of Banks with highest NPA (Non Performing Assets). The rate is alarming with public sector banks.
Compared to private banks, NPA is higher in public sector banks. I believe it is due to corruption and fraud in public sector banks.
Bank managers have the right to sanction loans upto certain limits. I believe this should not be allowed and let each and every loan proposal should pass the credit approval department.
I have seen many branch managers approving the loans even after knowing that loan will never be repaid. Most of the loans provided by branch managers are always NPA.
The lis is no wonder. Central Bank of India tops the list with around 21% NPA. The rate of NPA is beyong your imagination.
Central Bank of India is one of the most corrupted bank. You offer a cut to branch manager and your loan will be senctioned.
It is very easy to get loan from any of the CBI branch.