Mumbai Business Forum – Banks’ cash and assets are far from being a perfect reflection of their performance.
So what’s the best place to start?
Banking and finance firms have been known to take the cash out of their own accounts and move it to an undisclosed location to hide assets, often to avoid scrutiny.
The money can also be transferred from one bank to another.
Bank of Baroda has been caught transferring more than Rs 4,000 crore to the company’s overseas branch.
Its founder Sushil Kumar Bapu is said to have used his offshore company to hold more than $4.7 billion in assets.
BJP president Amit Shah has been accused of having an offshore company which he used to keep a substantial amount of cash in his company.
Other banks are also suspected of misusing cash.
According to The Wall Street Journal, the US government is probing the bank’s finances for possible violations of anti-money laundering laws.
The financial watchdog has said the bank has been under investigation for “misappropriation of funds”, while the Reserve Bank of India has said it is probing how much of the bank had been diverted into bank accounts, according to the newspaper.
RBI has also been looking into whether the government has given the bank money or loaned it money.
India’s biggest banks are likely to be among the top 5 biggest contributors to the government’s anti-corruption drive.
They account for more than 60% of the country’s total banking capital.