FD scam: Dena, OBC stocks fall

Besides the CBI probe, govt as the owner of both banks has ordered a forensic audit

Two public sector lenders — Oriental Bank of Commerce (OBC) and Dena Bank — have come under the Central Bureau of Investigation (CBI)’s scanner for alleged misappropriation of funds worth Rs 436 crore (Rs 180 crore in OBC and Rs 256 crore in Dena) from their fixed deposit customers.

Besides a probe by the CBI, the government, as owner of both banks, has ordered a forensic audit.

Stocks of both banks closed lower on BSE on Wednesday. While OBC was down 3.4 per cent at Rs 264, Dena Bank closed five per cent down at Rs 264.50.

Financial Services Secretary G S Sandhu said in Mumbai on Wednesday this was not a systemic issue and the two banks had suspended some people.      

These are instances that happened at the lower level, at the branch level because of lack of due diligence or non-adherence to the norms and procedures.

Dena Bank Chairman and Managing Director Ashwani Kumar said the bank did internal checks on all deposits above Rs 1 crore and tightened norms.  

The secretary said the government has flagged the issue of risk management by state-run banks. The deputy general managers and GM-rank officers will have to undergo a course on risk management before being considered for promotion.