Amid bank fraud saga; corporates said this to govt

It need be mentioned that Nirav Modi-Mehul Choksi saga in connection with the Rs 11,400-crore fraud at Punjab National Bank has come as a concern to the corporate

With many scams now emerging out in the open, the corporates have insisted that lending from banks must not get choked.

It need be mentioned that Nirav Modi-Mehul Choksi saga in connection with the Rs 11,400-crore fraud at Punjab National Bank has come as a concern to the corporate.

This is especially at a time when credit growth is about to recover and the economy set to grow at a higher pace.

nirav modi
nirav modi

On the other hand, India Inc has called for better control systems to check financial frauds and also suggested gradual reduction in government holding in public sector banks (PSBs).

The

Confederation of Indian Industry (CII) said government should lower its stake in PSBs to 33 per cent gradually

and adopt a twin strategy for tackling financial frauds, including better monitoring and supervision of banks and spread of best corporate governance standards.

Assocham cautioned against allowing the alleged fraud in the PNB to halt the entire system of corporate lending.

There is chance that this would lead to demoralisation among the top functionaries and employees of the state-owned banks.

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