Reserve Bank seeks information from banks in loans probe

The Reserve Bank of India (RBI) has asked lenders to provide details of their exposure to companies named by investigators in a bribes-for-loans investigation, a newspaper reported on Monday.

Last month, Central Bureau of Investigation (CBI) arrested eight financial company executives as part of the probe.             

The RBI has written to all banks seeking details of their lending to companies named by the CBI in the investigation, the newspaper said, without naming its sources.

"The RBI is trying to assess the extent of exposure, the quality of these assets, and whether banks followed norms while lending to these firms," an unnamed finance ministry official was quoted by the newspaper as saying.

A RBI spokesperson declined to comment when contacted by Reuters.

Last month, India's finance minister asked all banks, financial institutions and insurance firms to look into their exposures to firms named by federal investigators in the investigation.

Early this month, RBI governor Duvvuri Subbarao said all loans in the investigation were sanctioned under established rules, and that 13 of the 14 loan accounts were performing.

The alleged bribes-for-loans case is one of several recent corruption investigations to rattle corporate and official India.