JPC satisfied with our explanation: IndusInd

Jaidev Majumdar

Kolkata, Aug 28: THE allegations and counter allegations parried between the Calcutta Stock Exchange (CSE) and its clearing bank IndusInd Bank Ltd may take a new turn with the bank claiming that the Joint Parliamentary Committee (JPC) probing the scam is satisfied with its explanation.

Now, after CSE authorities went public with their stand, IndusInd officials are in a wait and watch mode. Since it is the clearing bank for the local bourse, the bank management has refrained from taking a hasty decision.

However, the bank might drag the exchange to the court as a last resort, if the CSE authorities continue to air the allegations in public and hold the bank partly responsible for snowballing of the payment crisis.

Speaking to The Financial Express, managing director, Bhaskar Ghose of IndusInd Bank said: "Their allegations are all rubbish. They have gone on record saying they may sue us, but why are they not doing it? I’ve personally met the JPC chairman and have intimated him, our standpoint and they have not asked a single question from then on."

Explaining why the bank has not gone public so far negating the allegations made by CSE, Mr Ghose said that this was due to the fact that IndusInd has been the clearing bankers for all the major stock exchanges in the country including the BSE and NSE.

"There is a lot of competition. We have been doing good business with CSE and at this point if we go to court against them we might lose our business which we don’t want to happen. But if the facts are not set right we won’t hesitate to pull CSE to disrepute," he said.
IndusInd has been the clearing banker for CSE since March 2000 and relationship between the two had been warm, barring this recent stalemate.

The former State Bank of India chairman and the current chairman of the CSE managing sub-committee, Mr Dipankar Basu, had so far denied any meeting with Mr Ghose despite his repeated requests. "I don’t know why he is not settling the dispute. It is also very surprising and shocking. But now that he has gone on record saying he wants to sue us, we’ll definitely look into the matter a lot more seriously," Mr Ghose said.

The recent duel with CSE has also portrayed IndusInd in a bad light so far its reputation is concerned.

"We have to frequently explain to other clients if the dispute has been resolved. It is affecting our other businesses as well. This is another reason why we have decided to make our views public and try to settle the matter. If it still does not turn out to be fruitful, we are left with no other choice but to take legal action," Mr Ghose added.