Does it not emphasise the need for independent audit of PSU Banks ?

                        Finmin  Asks  PSU Banks Not To Overstate  Profit

            NEW  DELHI  The Finance Ministry  has written to all public sector
            banks  asking them to ensure profits are not overstated and to make
            appropriate provision for bad loans.In a letter to heads of public sector
            banks , the Finance Ministry said " instances of over-reporting  of
            profit has been continuing year after year and no corrective action
            seems to have been taken to stop the recurrence." The letter assumes
            significance  in the light of rising bad debts in the banking sector.
            According to a senior official of a public sector , the letter  has been
            issued recently by  the Finance Ministry. Sometimes there could be
            a differnce of opinion about the classification of NPA which geta sorted
            out at the time of external audit or Annual Financial Inspection (AFI)
          by the Reserve Bank of India(RBI), the official said.

            The above report appeared in Economic Times on Page 11 (Economy)
            dated 17/02/2012 - Mumbai Edition. (www.economictimes.com)
            Does it not emphasise the need  for independent audit of PSU Banks ?
            Our policy makers and regulators need to take a broader view of the
            importance of bank branch audit. They need not go by what PSU
            Banks say about the benefits of CBS, isues such as cost of audit etc.
            The stakes are much higher than costs. The biggest stake holders
            of PSU Banks are depositors. Even governments's holding in Banks
            is out of public funds. There can be no short cuts for bank branch
            audit. Hope wisdom prevails sonner on our policy makers and regulators.