The state-owned lender, Corporation Bank with an exposure of Rs 2000 crore for the 2-G spectrum players confirmed that it was being probe by the Central Bureau of Investigation (CBI) into the matter.
However, the bank said that it was fully cooperating with the CBI, which was probing into the matter on the direction of the Supreme Court.
Talking to reporters after launching ?Corp Tutor Fee? in Mumbai on Thursday, Ramnath Pradeep, CMD, Corporation Bank, said, ?There is no violation of any prudential norms in the 2-G spectrum exposure as all the loans are fully secured.We are fully cooperating with the CBI by providing bank documents related to the subject.?
Talking about liquidity, Pradeep said that if a GDP growth of 8% to be sustained, the system needed to have the required liquidity. In fact in absence of sufficient liquidity, banks were compelled to raise their deposit rates. ?Today, we are able to meet credit requirement, but cost is a factor,? said Pradeep.
Commenting on possible interest rate hike, Pradeep said that it was the issue of demand and supply. Still, he agreed to the fact that inflation was an area of concern.
Corporation bank?s net interest margin (NIM), which was at 2.64% as on September 30, was likely to be at 2.5% for the entire fiscal, he said.
Corp Tutor Fee is a scheme for financing tuition fees for preparation of entrance examinations of professional exams.
