Letter to BS: Result-oriented oversight key to avoid bad loans, bank frauds

This refers to  “RBI cracks whip on auditors, to fine-tune oversight regime” (April 29). A result-oriented oversight is key to saving the banking sector from the growing incidents of bank credit turning into bad loans, early mortality of loans, and related frauds. Despite the robust systems and procedures in existence, banks are losing their earnings significantly to meet the provision and write-off requirements on account of bad loans and frauds.
 
Auditing and inspections are being conducted to prevent monetary and credibility losses of banks and to ensure that the organisation is free from any vulnerability and is trusted by