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Lena Dena Maaf

The bankrupt Dena Bank is being merged into Vijaya Bank and Bank of Baroda. So huge are the losses in the Bank that it needed two healthy banks to be able to absorb and withstand its losses. Its carcass of mismanagement is so heavy that it needed more than one bank to be able to carry it. But these are the privileges of being a government-owned entity, where accountability and answerability are not enforced even in a case of blatant misconduct and criminal misfeasance, which is the true story of Dena Bank.


If the utterly mismanaged and bankrupt Dena Bank was a private sector organization, it would not have been revived by merger as we are seeing, but would have been closed down and would have been sent to the courts for liquidation. Its depositors and investors would have lost tens of thousands of crores, due to the fraud and mismanagement perpetrated by its top management not just in giving bad loans, but in also thereafter showing indulgent leniency to the wilful defaulters.  Their deliberate forbearance added to the success of the frauds and the scot-free escape of the fraudsters. During the liquidation of the bank, a mandatory forensic audit would have revealed the criminal saga of bad loans, outrageous siphoning of funds, the deliberate unwillingness of the Bank to recognize cases of frauds and going soft on the recovery of loans.

Upon such findings, a criminal prosecution would have been launched against the erstwhile top management of the Bank, by agencies like CBI, SFIO, ED etc. and the entire chain of its complicit officers to bring the wrongdoers to the task. The investigation by multiple agencies and regulators would have brought out/unearthed the criminal nexus that led to the bad loans and their nonrecovery and action would have been initiated against them all. So corrupt was known to be Dena Bank, that not only did its credit officers, who sanctioned /disbursed loans make money, but so did its recovery officers, who happily let the defaulters subvert the judicial recovery process for a bribe.

But then Dena is a government-owned bank, where the rot started from the top because its topmost management was eagerly willing to take orders from their political masters, for their personal gains. They cared little for appraisals, due diligence, credit verification and processes and happily gave large loans on telephone instructions, to those who had influence and reach. They were fully aware while conducting such crimes that is a government-owned bank, they will not be allowed to fail and capital wasted/duped away by them, will ultimately be replenished by the government. They had no scare that if Dena Bank went bankrupt, they would have to face the wrath of its depositors, whose money was looted due to their misconduct and malpractices. These rotten top managers of Dena Bank were clear, that they are following the instructions of the system, and the system will itself look after them, which it has. Dena Bank is being merged, with no criminal investigation or punishment of those who looted it. None have been investigated, prosecuted, punished or arrested for its bankruptcy. It is a case of Lena Dena maaf (forgiven).  

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