Non-performing assets (NPAs) touched Rs 8.31 trillion at end-December 2017.
Among others, IBA Deputy Chairman and SBI chief Rajnish Kumar
and PNB MD Sunil Mehta briefed the panel on various aspects of non-performing assets (NPAs) and banking frauds. Senior advisor of IBA Alok Gautam was also present in the meeting, sources added.
RBI Governor Urjit Patel too will brief the committee later this month. Sources said that some of the members had questions on allegations against Kochhar. One of the member wanted to know if "nepotism" was also going on in private sector banks.
Bank has already constituted an independent enquiry into the allegations of quid pro quo against Kochhar in providing loan to Videocon Group.
Sources further said TMC MP and member of the panel Dinesh Trivedi wondered why pubic money was being used to recapitalise the state-owned banks
which are losing money due to frauds and defaults by corporates.
Some members quizzed the bank officials whether "aggressive lending" during the successive UPA governments was the reason for the mounting NPAs in the banking system, especially in state-owned lenders. Gross NPAs of state-owned banks
had crossed Rs 7.77 trillion at the end of December 2017, according to official data.
BJP MP Nishikant Dubey said Indian banks need not adhere to international capital adequacy norms (Basel-III) as it is leading to more provisioning of capital, sources said.
The committee was earlier briefed by Financial Services Secretary Rajiv Kumar about issues related to the banking sector.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.