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I hv resigned from a psu bank through proper channel as I got selected in Railway Deptt,while serving in bank I hv recommended some loans and want to know that can if these loans become bad say npa then what can be the consequences?After leaving a job can departmental action be initiated against the ex-wife employee?And if yes then what can b the consequences nd will it affect my job in future?
Dear Mr Deepak Kumar
Pl verify the service rules of your Bank regarding departmental action for recovery of loan recommended by you whilst in service. Disciplinary action cannot be taken against you, since after relieving from the Bank service - there will be no employer-employee relationship.
N Nataraajhan, Sakthi Management Services (HP : + 91 94835 17402 ; e-mail :

Can departmental action can be taken against a person after retirement can be answered by saying there is no employee-employer relationship and departmental relation ship has ceased-so no action is possible.
But on the other hand if am employee does a wrongful act intentionally causing loss ,he can be taken by previous employer to court even after he retires/quits etc.
Otherwise employees will do fraud and quit before it is discovered.
Please check out your bank rules,whether any departmental action had commenced before retirement etc.

You are morally responsible to attend the proceedings and justify the sanction of loan. You can be queried / called for interrogation but I am not sure of the legality of departmental action. Also since you have resigned and joined another Govt organisation through proper channel, you still are accountable and responsible for your actions done in the previous organisation and are liable to provide justification for your actions.
Deepak & others, we should strive hard & leave behind the memories in the minds & hearts of people and should never carry fear to your next assignment.
Has all the loans issued verified properly? Make a list of doubtful cases at least now and alert all concerned. Best of luck.

The poster is not the sole officer responsible for processing debts.
There are other supervisory staff also in the chain.
Is he the sole person to verify?
He needs to take all factors into consideration.
Full facts are not presented here.
If the action had been negligent,malafide or tainted by other considerations,then law can act against the person.
On the other hand if due diligence as per his bank rules has been done,then he need not fear any investigation.
He should not on his own submit any list of doubtful debts at this stage.
If he fears departmental action he needs to talk to is lawyer-the whole picture can be discussed between lawyer client-including the fact that he still is a Government servant.
Our advice is based on his one paragraph post. all for ur help,I was the recommending officer nd manager was the sanctioning,will my this incident pose Me in prob in my new job?can this lead to my termination from my new job if the matter reaches to very bad extent?
Deepak kumar,
I am sure you must have recommended the loans based on study,review and cross checks-financial statements,financial projections etc.
Banks have laid down procedure for recommending loans-Have you followed procedure?
No one can predict what will happen if loans were found to be recommended without due diligence and violating bank procedure.
IF you have done due process/diligence then put this worry out of your mind and focus on new job.
Loans can become bad due to other reasons-commercial,economic situation etc.

As Natrao has rightly said if you have done your due diligence while recommending the loan, you need not have to worry. Loans can be bad over a period/course of time for any reason/situation whatsoever it may, which cannot be taken for departmental inquiry since it was not intentional.
If the loan recommendation was done without following the procedure/due diligence or the recommendation was intentional by violating the laid down procedure/due diligence by the bank, then the Bank can proceed for legal suit against you.

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