Bank chairman said no politician as director, he was ignored

"The bank has suffered in the past due to reckless lending because of political interference and an obliging management, which resulted in accumulation of highest NPAs in the industry. If the Government wants this bank to survive, the bank should have directors who are not only professionals but also men of integrity and not connected with local politics."

That's R P Singh, Chairman of the Punjab and Sind Bank to Secretary (Banking) Vinod Rao on March 30 — putting it down, in black and white, his criticism of the manner in which Congress politicians have been thrust onto the boards of Government banks.

As first reported by The Sunday Express today, 33 of the 37 positions of independent directors have been filled by Congress politicians.

Singh has reasons to be upset. His bank, which has recently shown a financial turnaround, has five independent directors, four of whom are Congress politicians.

The Indian Express has obtained copies of correspondence between Singh and Rai as well as exchanges on the issue between the Department of Banking and Alok Kumar, Director of the Appointments Committee of Cabinet.

This is what Chairman R P Singh has said in his letter to Secretary, Banking:

• That one of the directors, Harcharan Singh Josh, "along with other non official directors has been continuously putting pressure on the bank to agree for unreasonable settlements of non performing accounts. Since the management was not agreeing to their requests, they have been resorting to opposing all the agenda items (during Board meetings)..."

• Another independent director, K K Sharma, the chairman complained, "has not submitted 'Deed of Covenant' declaration of secrecy and other mandatory information despite repeated telephone calls, letters and contacts by local branch officials".

• In the case of another director, Umesh Kumar Sharma, the complaint is also serious. The Chairman has written that he "gave an incorrect statement that he is a graduate, whereas he is only a matriculate... Harcharan Singh Josh is a member of the Minority Commission and is drawing salary as a full fledged public servant. He has been a defaulter of the bank and his accounts were settled after giving concessions."

... contd.

ALSO READ

Power elite used land sale to give themselves a new New Delhi

Rudy seeks direct election of PM, moves Bill to keep MPs out of ministries

Maoists attack DD centre in Bastar, 3 cops killed

PM, Sonia Gandhi one on sacking of ministers: Congress