MoF may ask Dena Bank chief to step down
New Delhi—According to some sources Dena Bank chairman AG Joshi may be asked by the finance ministry to step down.
If this happens, this would be the first time that the contract of a public sector bank chairman has been prematurely terminated.
The reason the banking department has come out with this extreme suggestion is the alleged lack of transparency in Dena Bank.
It is said that in a meeting with the banking division before coming out with the annual results of the bank, the bank chairman had reported that all was well with the bank.
But soon thereafter, the bank reported a stinging net loss of Rs 266.1 crore which took the ministry completely by surprise.
A G Joshi had taken charge of the bank in May 2000 and signed two balance sheets, which meant that he was aware of the financial affairs of the bank. Despite this, he misled the banking division.
The bank posted a total deposit growth of 10 per cent for 2000-01, which is decent. The main problem lies in its NPAs, most of which were created, say sources, as a result of the advances made by former chairman R Mishra.
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