Indian banks which were dragged to courts by corporates, on the allegation thatbanks mis-sold them forex derivative products leaving holes in their balance sheets, may have finally got some respite from judiciary, due to favourable rulings.
Speaking to FE, ICICI Bank’s joint managing director and CFO Chanda Kochhar said, ?Many courts across the country in the last two months have taken a very responsible view. We have been thus able to file recovery petitions via the debt recovery tribunal or get a stay order to prevent the sale of assets by these companies. These are results that are very positive for the Indian banking system.?
Many corporates had also complained to the Reserve Bank of India and the central bank had inspected the books of some banks to find out whether any mis-selling of forex products by the banks had taken place. However, RBI has not made any of its findings public.