STOCK MARKET BSE NSE

Cash-for-loan scam: Takru says SBI MDs report by weekend

Published: 27th November 2013 04:26 PM  |   Last Updated: 27th November 2013 04:43 PM   |  A+A-

SBI1

SBI constituted an internal committee to investigate bribery charges against Shyamal Acharya, one of its deputy managing directors.

By PTI

Financial Services Secretary Rajiv Takru today said the in-house panel constituted by the State Bank to probe corruption charges against one of its senior most Deputy Managing Directors Shyamal Acharya, who was sent out on forceful leave since then, will submit its report by weekend.

Takru, who is on the board of the bank as government nominee, also said it is wrong to blame the high bad assets in state-run banks to corrupt and lax practices in the loan appraisal process and ruled out changing the existing laws and procedures of working of banks.

"What has happened is most unfortunate. SBI has come out with their own internal committee and we expect the report of the committee by weekend," he told reporters after a meeting at the Reserve Bank.

On asked about the prevalence of high NPAs--some state-run banks have reported gross NPAs at over 7 per cent while in SBI, it is over 5 per cent---and if it can be attributed to corrupt practices in loan sanctioning process, Takru said that would be "speculative".

"NPAs are rising for a variety of reasons which you know," he added.

He said these allegations do not merit changing any of the laws and procedures of working of state-run banks and added that "we should wait for the law to take its own course.

"If anybody is guilty, surely you don't expect the government to say nothing should be done. If he is guilty, certainly, the law will take its course. But I think its a bit premature, we should not speculate on this," Takru said.

"I don't think there is anything here which requires a change in law or in procedures," he added.

Last Sunday, the Economic Offences wing of the CBI had registered a case against Acharya, who was heading the mid-corporate group at SBI, after raiding his house in the city.

The internal investigation follows raids by the Central Bureau of Investigation at the offices and residence of Acharya as well as those of former SBI executive K K Kumra and Piyoosh Goyal, founder of the Delhi-based World Window group in Mumbai, Delhi and Kolkata.

Cases were registered against him along with an ex-SBI official KK Kumarah and Chairman of a Delhi-based firm Worlds Window, Piyoosh Goyal, for alleged graft in disburals of Rs 400 crore loan.

Following this, SBI on Monday set up a two-member internal panel, comprising two MDs - Hemant Contractor and A Krishna Kumar - to probe the issue.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp