It is not that all decisions which result in loss to the banks are to be viewed as decisions taken with ulterior motives but, at the same time, the banks need to go into the merits of each decision so that actions taken with ulterior motives and without clear adherence to the laid down procedures can be recognised, segregated and dealt with incisively.
The role of the vigilance structure envisaged in the banks has to be to strike a fine balance between the role of risk taking which is the raison d’être of banks and the responsibility as trustees of public deposits. 9. The incidence of frauds and levels of NPAs in the banking system have been on an upswing for quite some time now.