The Financial Scam Of PMC Bank

Introduction to the case:

As we know the biggest news of 2019, the case of PMC bank. The account holders of PMC bank suffered a lot, but their no help of the Government to the people let’s keep this factor aside and, let's look at how ethical was the management of PMC bank was? 

Now let us start with the case of the PMC bank, we know this company or we might HDIL promoter which provide the home loan to people and this company is located in Mumbai, Maharashtra. HDIL promoter have colluded with the management of PMC bank to draw loans from the Bhandup branch.

Even though they did not make any payment the bank did not consider it has a non-performing asset.

The report has been estimated that the amount was around 6500 crore which is 73% of bank advances.

In the year 2018-19, the bank showed the net profit of 99 crores and it showed it non-performing assets were 3.76% of its total advances.

However, now we concluded that the bank has shown the wrong financial and fooled their customers.

Now lets us see Ethical Issues of the bank:

·       The first ethical issue was the collusion of the management with the HDIL promoters.

·       The second ethical issue was showing the wrong financial statement.

·       The third ethical issue was fooling their customer.

As we know that the business run for the wellfare of the customer, in this case, the bank has lost their customers trust not only this, they also raise the fear in the minds of the common people. As we all know the banks are one of the important sectors in the economy of the country. It is important that they should truthful with their customer, if not the entire economy is going to be affected. There are many financial scams in India, but at last, the common people is suffering from all this issue.

Reference:  

Business Standards,  

Link: https://www.business-standard.com/about/what-is-pmc-bank-crisis