Finance Minister Directs all PSBs, FIs and Insurance Companies to Look into their Exposures to the Various Companies Mentioned by CBI : Carry Out an Independent Evaluation on the Asset Quality, Documentation and Compliance of Prudential Requirements; Directs DFS, Regulatory Authorities and FIs to Review and Strengthen the Procedures Further in this Regard.
Union Finance Minister Shri Pranab Mukherjee directed that all Public Sector Banks (PSBs), Financial Institutions and Insurance Companies to look into their exposures to the various companies mentioned in the CBI application filed in the Court. He directed that they should carry out an independent evaluation on the asset quality, documentation and compliance of other prudential requirements in the companies mentioned in the CBI application.
Union Finance Minister Shri Pranab Mukherjee today held a review today with the officers of the Deptt. of Financial Services of his Ministry on the situation arising out of the CBI case involving a few banks and LIC Housing Finance Company. The Department of Financial Services (DFS) indicated during the review that an initial assessment has indicated that these are isolated instances of alleged illegal gratification. DFS also conveyed that as per information available with them, the asset quality in these cases have not been impaired.
Finance Minister Shri Mukherjee directed that while the CBI will take necessary action as per their mandate, Banks and financial institutions should be instructed to take appropriate action against these individuals as per established procedure.
The Finance Minister further indicated that the Board of Directors of the banks and financial institutions should carry out a fresh assessment of NPAs in these institutions. He said that the banks and financial institutions should strengthen the NPA monitoring and management in their institutions to ensure that advance action is taken to identify incipient sickness and take appropriate action thereon. He directed that they should ensure that all procedures and due diligences consistent with Board approved guidelines have been adhered to while approving the loans by the competent authority.
Finance Minister also directed that the Deptt. of Financial Services, regulatory authorities and institutions should take immediate action to review and strengthen the procedures further in this regard.