{"id":125,"date":"2019-01-17T05:55:58","date_gmt":"2019-01-17T05:55:58","guid":{"rendered":"http:\/\/emarkets.com.server.digiteck.in\/wrdpress\/?p=125"},"modified":"2019-05-15T10:19:47","modified_gmt":"2019-05-15T10:19:47","slug":"banking-crisis-in-india","status":"publish","type":"post","link":"https:\/\/www.speakin.co\/edit\/banking-crisis-in-india\/","title":{"rendered":"Banking Crisis in India"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"fff31b069dab2d4baa9938924ee8e97c\" data-index=\"1\" style=\"float: left; margin: 10px 10px 10px 0;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8586106947150931\"\r\n     data-ad-slot=\"4223625083\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p><span style=\"font-family: georgia, palatino, serif;\"><\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">Over the past couple of months, the news coverage is mainly of the frauds happening in the Indian banking sector. Be it the\u00a0<em>Punjab National Bank<\/em>approx. Rs. 12,000 crores loan fraud or the ICICI \u2013Videocon scam or the Rotomac fraud where seven consortium banks were cheated of Rs. 3700 crores. Altogether\u00a0<strong>in the financial year 2017-2018, a<\/strong>\u00a0<strong>total loss of Rs 25,775 crores<\/strong>\u00a0has been\u00a0<strong>incurred by 21 Public sector banks<\/strong>\u00a0due to different fraud cases. These frauds \/scams that have been taking place in the banks has shaken the foundation of the banking sector.<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The\u00a0<strong>reason<\/strong>\u00a0for these frequent crises can be attributed to the fact that\u00a0<strong>there were glitches in the operational aspect of the bank<\/strong>. The system was not robust enough to identify any wrongdoing in the initial phase itself, had the system been thorough then the concerned authority could have ascertained the malpractices before it went out of control. The\u00a0<strong>internal controls of the banks were faulty<\/strong>, and there have been violations on the part of the management, auditors and certain bank employees as well, who failed to recognize the fraud in the making.<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">All the reasons stated above are all the technical aspects of why the fraud happened, but there is\u00a0<strong>another aspect<\/strong>\u00a0which has been overlooked, i.e., the\u00a0<strong>role of the leader in these fiascos<\/strong>. Whatever breach of the rules occurred in the bank the superior authority of the bank had to know about it. Then why did they let these happen and allowed it to become so huge that it shook the foundation of the industry?<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">This crisis has opened a virtual Pandora\u2019s Box of the various behavioral aspects which are equally responsible for these situations.\u00a0<em>Manipulation or distortion of facts<\/em>,\u00a0<em>withholding and hoarding information, covering up of mistakes<\/em>\u00a0are some of the behaviors which can be seen in a low-trust organization.<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\r\n<p><span style=\"font-family: georgia, palatino, serif;\"><em><strong>WHEN AN ORGANIZATION IS FACING THESE ISSUES, IT IS THE JOB OF THE LEADER TO INSPIRE TRUST, THIS MOTIVATES AND IN RETURN ENCOURAGES THE TEAM MEMBERS AS WELL.<\/strong><\/em><\/span><\/p>\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"fff31b069dab2d4baa9938924ee8e97c\" data-index=\"2\" style=\"float: left; margin: 10px 10px 10px 0;\">\n<script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n    style=\"display:block; text-align:center;\"\r\n    data-ad-layout=\"in-article\"\r\n    data-ad-format=\"fluid\"\r\n    data-ad-client=\"ca-pub-8586106947150931\"\r\n    data-ad-slot=\"5455236699\"><\/ins>\r\n<script>\r\n    (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n\r\n<\/blockquote>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\">The leader should demonstrate specific behaviors to inspire trust in the team.\u00a0<strong>Talking straight, correcting mistakes, showing respect, creating transparency are some of the behaviours a leader should practice towards creating a high-trust organization.<\/strong><\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>Another aspect<\/strong>\u00a0which comes across is the<strong>\u00a0lack of accountability in the people<\/strong>. The leaders have to hold themselves accountable as well as they have to hold others accountable too. When people are held accountable, they become responsible for their actions, and a positive work environment is created in the organization which is conducive to creating an ethical work culture.<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><em>Banks have to aggressively implement certain measures both internally and externally which can restore the faith back in the banking system.\u00a0<\/em>They have to assure their customers that in spite of the setback the industry has faced\u00a0<strong>implementing strict laws and rules in their dealings is the need of the hour<\/strong>, and banks would enforce a fail-proof system ensuring that the possibility of any cheating can be prevented at the initial stage itself at the same time ensuring they present a customer focused and friendly work culture.<\/span><\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<p style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>The banking sector is the backbone of the economy and hence it is essential that the trust in the industry has to be restored as quickly as possible.<\/strong><\/span><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<h5 class=\"wp-block-heading\" style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>DISCLAIMER:<\/strong><\/span><\/h5>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\r\n<h6 class=\"wp-block-heading\" style=\"text-align: justify;\"><span style=\"font-family: georgia, palatino, serif;\"><strong>THE VIEWS AND OPINIONS EXPRESSED IN THIS ARTICLE ARE THOSE OF THE AUTHOR AND DO NOT REFLECT THE VIEWS OF SPEAKIN, ITS MANAGEMENT OR AFFILIATES. SPEAKIN MAKES NO REPRESENTATION AS TO ACCURACY, COMPLETENESS, CORRECTNESS, SUITABILITY OR VALIDITY OF ANY INFORMATION ON THIS ARTICLE AND WILL NOT BE LIABLE FOR ANY ERRORS, OMISSIONS OR DELAYS IN THIS INFORMATION OR DAMAGES ARISING FROM ITS DISPLAY OR USE.<\/strong><\/span><\/h6>\r\n<p><span style=\"font-family: georgia, palatino, serif;\">\r\n\r\n<\/span><\/p>\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Over the past couple of months, the news coverage is mainly of the frauds happening&#8230;<\/p>\n","protected":false},"author":41,"featured_media":576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"footnotes":""},"categories":[55,86,11,12,104,112,114,137,22,23,165],"tags":[293,339,340,341,342,343,344,345,493,516,517,550,687],"class_list":["post-125","post","type-post","status-publish","format-image","has-post-thumbnail","hentry","category-banking","category-customer-service","category-digital-india","category-editorial","category-ethical-banking","category-finance","category-financial-planning","category-indian-business","category-leadership","category-leadership-development","category-money","tag-accountability","tag-bank-failures","tag-bank-regulations","tag-banking","tag-banking-crimes","tag-banking-crisis","tag-banking-fiascos","tag-banking-frauds","tag-economy","tag-ethical-banking","tag-ethical-work-culture","tag-financial-transparency","tag-loan-defaults","post_format-post-format-image"],"_links":{"self":[{"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/posts\/125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/comments?post=125"}],"version-history":[{"count":0,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/posts\/125\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/media?parent=125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/categories?post=125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.speakin.co\/edit\/wp-json\/wp\/v2\/tags?post=125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}