Twitter
Advertisement

Nationalised banks' non-performing assets shoot up to R2,16,739 crore

According to the Reserve Bank of India (RBI), its non-performing assets of nationalized banks has swelled from Rs9,190 crore in 2011-12 to Rs2,16,739 crore in 2013-14.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

According to the Reserve Bank of India (RBI), its non-performing assets of nationalized banks has swelled from Rs9,190 crore in 2011-12 to Rs2,16,739 crore in 2013-14.

The statistics were provided by the RBI to former journalist Ketan Tirodkar under the Right to Information Act (RTI). Tirodkar has filed a public interest litigation in the Bombay high court seeking that the Central Bureau of Investigation (CBI) be directed to conduct a probe in the NPA scams.

The HC, in March 2014, had directed the CBI to inform what action it has taken against 140 cases of alleged fraud registered by the RBI with regards to NPA of nationalized banks. Despite HC directions, neither the CBI nor the RBI have filed their replies to the PIL. During the hearing on Thursday, no counsel was present for either RBI or CBI.

A division bench of chief justices Mohit Shah and B P Colabawalla has kept the matter for further hearing on February 12.

Tirodkar has alleged in the petition that RBI and the nationalized banks do not comply with the Banking Regulation Act, 1969, which mandates periodical tendering of audit reports to the RBI. The same is not complied in order to suppress the NPA scenario and shield the culprit beneficiaries working in collusion with the banking authorities, alleges the petition.

According to information obtained by Tirodkar under the RTI, the NPAs of nationalized banks were Rs455 crore ending March 2008. The same shot up to Rs9,190 crore in ending March 2012.

The petition states that over 140 bank fraud cases of around Rs15 crore each were reported to CBI by various banks between 2008 and 2012.

His petition adds: "Recently the United Bank of India's chairperson and managing director, Archana Bhargava, resigned citing personal reasons. At that time, the gross NPA of the bank was Rs8,545 crore, which was 10.82 per cent of its gross advances, and net NPA was Rs5,630 crore or 7.44 per cent of the net advances."

Also the Sarada Chit Fund of the State Bank of India created NPAs of hundreds of crores with the bank which has not been reported to the RBI. This was mandatory under various sections of the Banking Regulations Act, 1969.

The Central Vigilance Committee Rules state that the CBI has to be informed of any fraud case more than Rs50 crore. In a case where the amount exceeds Rs100 crore, an FIR has to be filed directly.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement