Pranab asks banks to ensure investor money is safe

Finance Minister Pranab Mukherjee today asked banks and financial institutions, which have exposure to companies involved in the multi-crore rupee housing finance racket, to ensure that investor money is safe.
   
"You know I have already instructed banking and financial institutions to look into all these issues and they should ensure that institutions' money is saved," Finance Minister Pranab Mukherjee told reporters here.

Yesterday, Mukherjee held a review meeting with the officers of the Department of Financial Services to take stock of the situation arising out the CBI arresting eight top officials of banks and financials institutions for allegedly accepting bribe for sanctioning loans.

Mukherjee had directed the lenders to look into their exposures to various companies mentioned in the CBI application filed in court.

Among the companies named by CBI are financial services firm Money Matters, D B Realty, Pashmina Ltd, Mantri Realty, Sigrun Ltd, Entertainment World and Indore City Treasures.

He had also directed banks and financial institutions to 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.

The CBI on Wednesday busted the housing-finance racket and arrested LIC Housing FInance CEO Ramachandran Nair, LIC Secretary (Investment) Naresh K Chopra and six top officials from banks and financial institutions, on charges of taking bribes to grant corporate loans.