The banker-borrower relationship is essentially symbiotic as both need each other. Both have certain expectations from the other and when these don’t get fulfilled on account of a malafide or fraudulent intent on the part of either of them, the relationship gets strained. Recent spurt in instances of forensic audit being conducted by bankers on their borrowers signifies a breakdown in the implicit trust.
There has also been an increase in incidence of suits filed against defaulters and cases of wilful default – an unwillingness to pay, despite an ability to pay. These problems could have their genesis in a failure to exercise the right amount of prudence and due diligence on part of the banker or an ab initio intent of the borrower to defraud the bank.