SBI's Dy MD Shyamal Acharya cash-for-loan scam probe report soon

Nov 27 2013, 17:21 IST
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Rajiv Takru, who is on the board of the bank as 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. Reuters Rajiv Takru, who is on the board of the bank as 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. Reuters
SummarySBI sent its Dy MD Shyamal Acharya out on forceful leave since scam was unveiled.

Financial Services Secretary Rajiv Takru today said the in-house panel constituted by the State Bank of India (SBI) to probe corruption charges against one of its senior most Deputy Managing Directors Shyamal Acharya, who was sent out on forceful leave since then, will submit its report by weekend.

Takru, who is on the board of the bank as 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 (RBI).

On asked about the prevalence of high NPAs--some state-run banks have reported gross NPAs at over 7 per cent while in SBI, it is over 5 per cent---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 these allegations do not merit changing any of the laws and procedures of working of state-run banks and added that "we should wait for the law to take its own course.

"If anybody is guilty, surely you don't 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.

"I don't think there is anything here which requires a change in law or in procedures," he added.

Last Sunday, the Economic Offences wing of the CBI had registered a case against Shyamal Acharya, who was heading the mid-corporate group at SBI, after raiding his house in the city.

Cases were registered against him along with an ex-SBI official KK Kumarah and Chairman of a Delhi-based firm Worlds Window, Piyoosh Goyal, for alleged graft in disburals of Rs 400 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.

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