The finance ministry on Wednesday said the Bank of Baroda (BoB) fraud case was a one-off incident, and would not lead to any systemic problem in the banking sector.
Following a meeting with public sector banks (PSBs) on the sectoral reform package, the Indradhanush, minister of state for finance Jayant Sinha said sufficient surveillance was being undertaken to detect any violation of norms, adding that the government and regulators were very vigilant on governance at the public sector banks.
The government also took up the issue of monetisation of non-core assets and discussed whether disposing them of was in commercial interest of the banks to improve capital adequacy. Discussions also covered existing foreign branches of PSBs, and how can the best value be realised from such investments. The possible role of the government in this regard was also taken up.
A statement issued by the finance ministry after the meeting, chaired by Sinha and attended by financial services secretary Anjuli Chib Duggal and PSB chiefs among others , said discussions were also held on the issue of having robust compliance policies and the need to have requisite checks in place to detect any violation, along with strong alarm and signalling systems.