CBI Arrests Top Bankers - Finance Ministry seeks Report
IN a quick action, the Finance Ministry has sought reports from the Banks and Financial Institutions. According to the reports received by Finance Ministry,
LIC of India: The CEO of LICHFL Shri Nair and Shri Naresh Chopra, Secretary (Investment), LIC have been arrested. Senior executives of a financial services company have also been arrested in this case. LICHFL has issued a press release assuring its investors, customers and business associates that all necessary steps would be taken to ensure that interests of various stake holders are fully protected. It has also indicated that all loans have been secured by underlying assets to the full satisfaction of the appropriate authority.
Bank of India: The CBI at Chennai had enquired about particulars of Shri Tayal, General Manager, Mumbai Large Corporate Branch who was earlier working in Chennai Large Corporate Branch and sought information on three accounts viz. OPG Power, BGR Energy and Ashapura Minechem, Mumbai. Of these three accounts, Bank of India has reported that only one is at present NPA on account of derivative losses. Shri Tayal was interrogated by CBI in Delhi on 23.11.2010 on the above three accounts. He has been arrested by CBI.
Central Bank of India: The Chartered Accountant, Director on the Board of the Bank Shri M.S. Johar has been arrested by CBI in this case. No official of the bank has been arrested. CMD, Central Bank has confirmed that as per information available there is no impact of the above development on asset quality.
Punjab National Bank: Shri V.K. Gujjal, DGM of the Bank has been arrested. Mr. Gujjal is working as Chief Operating Officer of PNB Investment Services Limited, a merchant banking subsidiary set up by the Bank and headquartered in Delhi. Prior to this he was working as DGM in-charge of Large Corporate Branch, Delhi from 30th May, 2009 to 22nd May, 2010. CMD of PNB has said that there is no information linking the above incidence to any loan account of the bank.
According to the Government, this is not a serious issue as the advances by Banks are in the range of about 40 Lakh Crores and this is a very small percentage of that amount and it happened because of personal greed and not system failure.
We were discussing in our Edit Meeting last night about how difficult it was to get a loan of Rs. 15 to 20 Laks rupees from a Bank, which we have all faced, a colleague suggested – the trick is we have to try for a loan of a 100 Crores and not small amounts.
There seems to be only two reasons for honesty:
1. Lack of opportunity, and
2. Fear of police.