Reserve Bank of India governor Urjit Patel did not meet the parliamentary committee on finance citing prior appointment. An RBI spokesperson said that the governor could not attend the meeting, but refused to divulge what engagement he had to attend.
The meeting was scheduled to discuss the rising non-performing assets in the banking sector and also the rampant cases of frauds in public sector banks.
Two parliamentary committee members who were scheduled to attend the meeting said the governor informed us that he would be unable to attend the meeting.
"He excused himself, despite it being an important meeting on the critical developments in the banking sector. The meeting stands cancelled until the governor gives us new dates," said a parliamentary committee member.
"The government fears that there are large-scale frauds much higher than the reported figures in the banking sector," the member of parliament said.
Last month the parliamentary standing committee on Finance met finance ministry officials to respond to queries on recent bank frauds and also the NPA situation.
Indian banks, already burdened by a near-record Rs 9.5 lakh crore of soured loans as of last year, were expected to report a further rise in bad loans in the March quarter after the central bank withdrew half-a-dozen loan restructuring schemes and tightened some rules in February.
With many banks under the RBI's prompt corrective action yet to announce their results, PSU banks that have announced their results so far have reported a combined loss of Rs 43,026 crore this year. In the last fiscal the government had infused Rs 80,000 crore into public sector banks. This financial year the government will have to hike the recapitalisation corpus so that the banks have sufficient capital.
Government has been taking some steps to curb the problems by asking the state-owned banks to scrutinise if there is a fraud in every NPA account over Rs 50 crore, closure of international operations, upgradation of technological and risk management systems and better human resource practices.
TILL NEXT TIME
- The meeting was scheduled to discuss NPAs, rampant cases of frauds in PSBs
- An RBI spokesperson refused to divulge what engagement RBI governor had to attend
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Urjit Patel")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}