Hit by frauds, lenders plan to hire agencies for loan monitoring

At the receiving end of a number corporate frauds in the recent past, banks are planning to appoint external agencies in all consortiums lending above Rs 250 crore for continuous monitoring of funds. According to two top public sector bankers, the need to engage external agencies to conduct a “forensic audit kind” of survey  continuously was necessitated by some big-ticket frauds such as the one at Bhushan Power & Steel, besides the failure of rating agencies to provide a correct assessment of companies’ financials. At present, once loans are disbursed by a c.....

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