Loans to ABG Shipyard turned NPAs prior to 2014, says FM Sitharaman

Loans to ABG Shipyard turned NPAs prior to 2014, says FM Sitharaman


on Monday said the account turned NPA during the erstwhile UPA regime and the banks took lesser than normal time to detect the fraud perpetrated by the shipping firm.

“…in this particular case with that kind of a measurement, actually, I should say to the credit to the banks, they’ve taken lesser than what is normally an average time to detect these kinds of frauds,” said at a press conference after addressing the members of the RBI board.

The minister said normally banks take 52-56 months of time to detect such cases and initiate follow-up actions.

The Central Bureau of Investigation (CBI) recently booked Limited, its former chairman and managing director Rishi Kamlesh Agarwal and others for allegedly cheating a consortium of two dozen lenders led by ICICI Bank.

fraud is much higher than the one perpetrated by Nirav Modi and his uncle Mehul Choksi, who allegedly cheated the Punjab National Bank (PNB) of around Rs 14,000 crore through issuance of fraudulent Letters of Undertaking (LoUs).

Sitharaman also said that during the NDA regime, health of banks has improved and they are in position to raise funds from the market.

Addressing the press conference, the RBI Governor Shaktikanta Das asserted that RBI’s inflation projections are quite robust. He further said the momentum of inflation, from October 2021 onwards, is on a downward slope.

“It’s primarily the statistical reasons the base effect which is leading to higher inflation especially in third quarter, and the same base effect will play in different ways in the coming months,” Das said.

(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.)

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