or suppression of facts or withholding of information, and state what really led to these cases being referred to the CDR cell," the official said. The aim of such vigilance activities is not to stifle risk taking, which is central to the banking business, but only to prevent malpractices and weed out corruption, in turn making the banking system more healthy, the sources said.
The CVOs of PSUs are essentially chosen from banks, IAS and other allied services, and come under the CVC. The CVOs of PSBs are career PSB officials, but the CVO of a PSB is chosen from another PSB to avoid conflict of interest.
The financial services secretary Rajiv Takru had mooted an independent oversight committee for the CDR cell -- consisting of members including legal, financial and technology experts -- to ensure that only genuine cases are referred to the CDR cell and had sought suggestions on it from the Indian Banks’ Association.
The CBI on its part is scrutinising the top 30 cases of non-performing assets of the entire banking system in the country. Special attention is on cases such as the one involving Deccan Chronicle, Kingfisher Airlines Ltd, and Sterling Biotech Ltd, the sources said.
As on June 30, this year a total of 415 cases involving Rs 2.5 lakh crore were approved by the CDR cell. This was up from 309 approved cases worth Rs 1.68 lakh crore as on June 30, 2012. Also, restructured standard assets as a percentage of gross assets went up to 5.7% as at March end 2013 from 4.7% last year, while the same for PSBs increased to 7.1% from 5.7%. Gross NPAs of public sector banks had jumped to Rs 1.79 lakh crore at the end of the June quarter from Rs 1.55 lakh crore as on March 31, 2013.
In August 2012, Reserve Bank of India deputy governor KC Chakrabarty had said in a speech: "It appears that the provisions of the CDR mechanism have not been used very ethically and judiciously, giving rise to the unprecedented increase in