Bank of Maharashtra arrests: Why bankers are angry, what are their latest demands

By: | Updated: June 24, 2018 9:48 AM

The senior bankers have condemned the recent assets of the top management of the Bank of Maharashtra for “taking bona fide decisions”.

Bankers are also mulling over a plan to take insurance cover for their senior officials under investigation to help them meet the cost for defending themselves.

Bank of Maharashtra: The senior bankers have condemned the recent assets of the top management of the Bank of Maharashtra for “taking bona fide decisions”. They have termed the arrests as ‘arbitrary’ and called the probe launched by the authorities as ‘harassment’, PTI reported. The senior banker son Friday called for forming an independent committee to give clearances to initiate criminal proceedings against senior bankers, the report said.

This new development comes after the economic offences wing of the Pune police had on Wednesday arrested the managing director and chief executive of Bank of Maharashtra Ravindra Marathe, its executive director Rajendra Gupta, zonal manager Nityanand Deshpande and four other officials along with former chairman Sushil Muhnot in an alleged cheating case lodged against real estate developer DS Kulkarni and his wife.

“Bankers plans to propose to the government that an independent committee, probably with a senior representative from the central bank, be formed to give clearance for initiating criminal proceedings against senior bankers. “This will ensure a smooth functioning of the banking industry and enable decision-making,” PTI reported citing IBA chief executive VG Kannan.

“We feel that the arrest of BoM officials is unwarranted and unfortunate, and has left the entire banking industry concerned and anguished. Bank officials are now worried that genuine banking decisions are being questioned by law enforcement agencies,” V G Kannan added.

In addition, the bankers are also mulling over a plan to take insurance cover for their senior officials under investigation to help them meet the cost for defending themselves. Despite such unfortunate incidents, the IBA expressed their willingness to help the industry get credit saying credit is very critical for them and bankers are committed to provide the same.

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