News, Scrip Scan

Banks hire scores of oversight agencies to keep tabs on end-use of loans

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Banks hire scores of oversight agencies to keep tabs on end-use of loans

On the tepid credit growth, Kumar said he expects some pick up during the second half

rajnish-kumarWith increasing cases of fund diversions, banks have come together and empanelled as many as 83 oversight agencies to keep a tab on the end-use of loans, State Bank chairman Rajnish Kumar said Thursday.

The chairman of the largest lender said there have been instances where an individual or a company has borrowed from one bank and at the same time uses a current account facility with some other bank to divert funds.

“Hiring oversight agencies is one of the things being done by banks to prevent such misuse,” Kumar told reporters.

He also suggested that methods of lending will need to undergo change.

“The consortium discipline or the multiple banking discipline has to be improved and there the regulator also has to pay a role,” he said.

On the tepid credit growth, Kumar said he expects some pick up during the second half.

“If you look at the year-on-year growth, we are seeing 13 percent. Hopefully, if this continues or remains at the same level in the second half, we will be very happy. Only by the second half we will know how much credit is needed,” Kumar said.

Talking about the liquidity conditions, he said at the sectoral level, there is enough liquidity in the system as the RBI announced many measures immediately after the budget to improve liquidity for NBFCs.

https://www.business-standard.com/article/finance/banks-hire-scores-of-oversight-agencies-to-keep-tabs-on-end-use-of-loans-119072501693_1.html

Excerpts from Gaurav’s Blog

  Rest in Peace now Gerela Saab  ! Mr S T Gerela ex GM of BSE passed away peacefully this morning We had not met in years but he always remained at the top of my mind when it came to testimonials for this is what he had said to me over a decade ago,when […] [...]

Vedanta de-listing offer price Rs 87.50~Come on Mr Anil Agarwal ! Promoter Group of  Vedanta Ltd has proposed a voluntary de-listing at an indicative offer price of Rs 87.50~are the over 7.3 lakh minority shareholders from Alibag !? …apologies to the people of Alibag Some would term this as De-listing Duplicity ~ but I would […] [...]

This is a Riskless Reliance Industries Rights Investment Strategy for those over 2.3 Million Shareholders already holding RIL shares. It is not a recommendation to buy RIL cum rights  It’s a no brainer yet I’m just penning a brief note because some have told me they hold Reliance but are skipping the Rights ! Don’t […] [...]

 Wealth is negotiable, Health is not Your Personal Well Being is more important that the Stock Market Well Being ~ Always & more so in this unfathomable ongoing Covid-19 Reality Above’s a three minute reach out by me last night to all connected with me to reinforce this .It’s also posted on Facebook , […] [...]

Yes Bank ~ Has the RBI & MOF lost it !? SEBI really is a bystander here Controversial Lock In Clause 3 Sub Clause 8 (a) in the Scheme of Reconstruction  No wonder the Finance Minister Mrs Nirmala Sitharaman, while highlighting only selected points, even when asked for details of the Scheme,did not want to […] [...]