Punjab National Bank / window dressing, fraud & forgery

Contact information:

Shri Shiv Kumar Gupta
CVO cum GM,
Punjab National Bank,
HO: New Delhi

Senior bank officials working as Branch Head or Regional Head or Circle Head or Zonal Head or Central Head, all have barring some exceptions resorted to window dressing in the past and it is their mastery in art of window dressing that they continued to be blessed with one after other promotions superseding honest performers. Shri Joginder Kumar Gupta Previously Circle Head (AGM) Punjab National Bank, Muzaffarpur Circle, Presently Circle Head (DGM) Patna Circle and Shri K.L.Bareja Previously Circle Head, Arrah Circle are renowned personality in the field of financial irregularity, fraud & forgery. One such example was episode of Muzaffarpur :
- A front page highlighted news published in Dainik Jagran against Shri Joginder Kumar Gupta Previously Circle Head (AGM) Muzaffarpur Circle & Shri K.L.Bareja Previously Circle Head, Arrah Circle for hatching criminal conspiracy, fraud & forgery in illegal transaction of Government fund (DDC Muzaffarpur) amounting Rs. 40 Crores on 6.12.2010, which gives bad name to Punjab National Bank.
- Again highlighted front page news published in Dainik Jagran against Shri J.K.Gupta the then Circle Head, Punjab National Bank, Muzaffarpur Circle for his ill doings violating all norms of PNB & RBI on 7.12.2010.
- The DDC Muzaffarpur has instructed Senior SP vide his letter dated 6.12.2010 to investigate the fraud made on the instruction of Shri J.K.Gupta to Branch Manager BO: Khabra Road by opening a fictitious account no. [protected] in the name of DDC Muzaffarpur.
- The DDC Muzaffarpur has also constituted 3 member committee to investigate the whole affairs.
- The matter was to some extent suppressed by issuing a press note on 6.12.2012 by Circle Head Muzaffarpur by apoliging and assuring for rectification of the financial irregularity criminally conspired by the previous Circle Head. Further to somehow patch up the tarnished image of Punjab National Bank the then FGM (Shri Srinivasan) alongwith Shri J.K.Gupta and current CH met the DDC & DM Muzaffarpur on 7.12.2010 apoliging and begging pardon from the state authorities for the financial crime made at the behest of Shri J.K.Gupta.

It is shame on the face of PNB that after this episode Shri J.K.Gupta was promoted from AGM to DGM and Shri K L Bareja transferred to HO, place of his choice.

They not only resorted to window dressing for deposits but also for advances.RBI never took notice of it or one may say that they indirectly supported this unhealthy and unethical practice prevalent in public sector banks in the name of achievement of targets.

Bank officers paid abnormal rates of interest for short term deposits and achieved the target of deposits. Bankers then motivated high value borrowers to withdraw their unavailed portion of sanctioned limit on closing days and park the same in their deposit account. In this way they made artificial jump in deposits and advances in last few days of closing year or closing quarter.
This fraudulent method of achieving target jeopardized the career of hundreds of senior officers who did not resort to window dressing and these officers were sidelined, posted at critical places and finally rejected in all promotion processes. There have been hundreds of senior officers who are expert in window dressing of advances too. They arrange short target valued clients to avail short term loan even if the corporate do not need and finally compensate them in different ways.

These corrupt bankers have caused huge loss to banks by paying abnormal interest for short period and by providing sub-PLR rate on advances to big clients who obliged them during closing period. All this caused huge loss to tax payers, investors and those who kept their hard money in saving deposits. Not only this these officers played big role in creation of bad assets in banks and finally writing off of big values loans .Volume of NPA was always concealed by these clever bankers and now on CBS they are getting exposed . Gross NPA of banks has made a new top and gone beyond control.

Finally when bank incurred loss or earned less profit, even wage revision of staff was treated by Ministry in casual manner and ultimately all staff had to bear with nominal or negligible rise in their wages.

Who will after all punish these corrupt officers who have been using their flattery and bribery powers to buy the good wishes of ministers and RBI officials and who have been buying even vigilance officials to close their files related to corrupt activities?
After all why RBI officials and Ministry of Finance maintained silence for decades together is a mystery? Most of senior banks have got blessing of some ministers or some officers in MOF or RBI and this is why they not only get before-time promotion but also get safe exit at the time of retirement even if they committed hundreds of irregularities in their posting at various offices.

It is earnestly requested that the working of Muzaffarpur and Patna Circle of Punjab National Bank may please be investigated to bring the corrupt practices in lime light going on there.

Yours’ Sincerely

(Smt. Rekha Devi Gupta)
Aghoria Bazar, Muzaffarpur – 842001
Email: [protected]
Date: 17.3.2013

Mar 19, 2013

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