Panel report on SBI deputy MD likely by weekend

Written by PTI | Mumbai | Updated: Nov 28 2013, 10:25am hrs
Financial services secretary Rajiv Takru on Wednesday said the in-house panel constituted by the State Bank of India to probe corruption charges against one of its senior-most deputy managing directors, Shyamal Acharya, who has been sent on compulsory leave , will submit its report by weekend.

Takru, who is on the board of the bank as a government nominee, also said it is wrong to blame the high bad assets in state-run banks to corrupt and lax practices in the loan appraisal process and ruled out changing the existing laws and procedures of working of banks.

What has happened is most unfortunate. SBI has come out with their own internal committee and we expect the report of the committee by weekend, he told reporters after a meeting at the Reserve Bank of India.

On the prevalence of high NPAs some state-run banks have reported gross NPAs at over 7% while in SBI, it is over 5% and if it can be attributed to corrupt practices in loan sanctioning process, Takru said that would be speculative. NPAs are rising for a variety of reasons which you know, he added.

He said allegations do not merit changing any of the laws and procedures of working of state-run banks and added we should wait for the law to take its own course.

If anybody is guilty, surely you dont expect the government to say nothing should be done. If he is guilty, certainly, the law will take its course. But I think its a bit premature, we should not speculate on this, Takru said.

Last Sunday, the CBI had registered a case against Acharya after raiding his house in the city. Cases were also registered against an ex-SBI official KK Kumarah and chairman of a Delhi-based firm Worlds Window, Piyoosh Goyal, for alleged graft in disburals of R400-crore loan.

Following this, SBI on Monday set up a two-member internal panel, comprising two MDs Hemant Contractor and A Krishna Kumar to probe the issue.