When Bankers Joke

Bharat Financial Inclusion ( Wholly owned subsidiary of IndusInd Bank) recently admitted to a technical glitch. The glitch resulted into:

84,000 loans were sanctioned without customer consent.

The ones who are in real trouble is:

• IT Department
• Regulatory team
• Risk Management team
• Internal Audit team
• Chief Financial Officer
• Chief Operating Officer
• Managing Director

The big question:

An article stated that this issue was highlighted by the field staff within two days and the technical glitch was rectified expeditiously.

If above statement is Big Yes, then did IndusInd Bank reported Stock Exchange about this issue?

If No, then serious action should be taken on the Board of Directors of IndusInd Bank.

So how the Bankers Joke.

After disbursing 84,000 loans without customer consent, the bank stated that:

“The bank wishes to reiterate that there is a strong risk management and control framework in place, both within the bank and at BFIL. Nevertheless, the bank has been following a conservative provisioning approach and reiterates that there is no change in the credit cost estimates including that in the micro-finance business…In October 2021, nearly 100 per cent of the loan disbursements were in the bank accounts of the customers, as in pre-Covid time,’’