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Par Panel to quiz FinMin officials on Apr 17 on bank NPAs

Press Trust of India  |  New Delhi 

A parliamentary panel will grill ministry officials on April 17 amid rising NPAs, incidents of fraud and governance lapses in the sector.

The Standing Committee on Finance, chaired by senior M Veerappa Moily, had last met on March 9 in the aftermath of the over Rs 13,000 crore fraud in

It had then asked the ministry to institute a comprehensive enquiry encompassing systemic elements in the case and submit its report within a month.

"The Standing Committee is scheduled to meet ministry officials on April 17 and challenges in the sector, including NPAs and stressed assets, would be discussed," an said.

As per RBI's Financial Stability Report, gross (NPA) ratio of public sector banks was at 13.5 per cent at the end of September, 2017, 1 percentage points higher than six months ago.

The government had in February announced a Rs 2.11 lakh crore recapitalisation plan for PSU banks to revive the sector.

The meeting assumes significance since the sector is dealing with governance issues also at two -- ICICI and Axis.

Global Ratings had earlier in the day said that the recent issues in reiterate the need to improve risk management, and maintain strong governance practices.

Chanda Kochhar, the of the country's leading ICICI Bank, is currently under investigation for an alleged conflict of interest associated with the bank's loan to the in 2012.

Recently, the board of has sought RBI nod for the reappointment of for six months ending December 31, 2018. This is after the central declined an earlier proposal to give her a three-year term ending June 30, 2021.

According to reports, the RBI's unwillingness to approve the initial request of three years was due to a number of and governance issues that have emerged at the over the past year or so. These include a deterioration in asset quality and underreporting of nonperforming loans, said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 18:05 IST
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