Indian banking and finance sectors trouble does not seem to end. The loan crisis of PMC Bank, Yes Bank, J & K Bank, Lakshmi Vilas Bank, Maharashtra State Co-operative Bank, IDBI bank reflects regulatory oversight, a lack of accountability and the failure to learn from mistakes. These bank scams that rocked the nation are an indication of the systemic rot in India's financial sector. Frequent loan defaults, fraud and the underreporting of bad loans at a time of slowing economic growth and muted credit demand are not good for the economy. The common people have to bear the brunt and suffer. Indian banking sector cannot afford poor corporate governance anymore. It is time to strengthen banks' boards by filling them with competent people with experience in banking and finance, instead of retirees. There is an urgent need for improving the governance systems of our banks and financial institutions which are undeniably vulnerable and constantly susceptible to fraud.
