Pranab asks PSU banks and FIs to assess exposure to scam-hit firms

Finance minister Pranab Mukherjee today asked all public sector banks (PSBs), financial institutions and insurance companies to look into their exposures to the various companies mentioned in the CBI application filed in the court.

He said PSU banks, insurance companies and other financial institutions should carry out an independent evaluation on the asset quality, documentation and compliance of other prudential requirements in respect of the companies mentioned in the CBI application.

He was speaking at a review meeting with officials of the department of financial services of his ministry on the situation arising out of the CBI case involving a few banks and LIC Housing Finance Company.

However, according to an initial assessment of the department of financial services, these are isolated instances of alleged illegal gratification. DFS also said as per information available with them, the asset quality in these cases have not been impaired.

He minister, however, wanted the department to instruct banks and financial institutions to take appropriate action against these individuals as per established procedure.

The finance minister also said he wanted the boards of banks and financial institutions to carry out a fresh assessment of NPAs in these institutions.