Citizens' Issues
Bank officer held for siphoning off Rs1.5 crore

A probationary officer from Central Bank of India's Dwarakanagar branch allegedly diverted Rs1.5 crore in his personal account, took sick leave from the bank and started working with a private bank in Jharkhand

 

Visakhapatnam: Former probationary officer of a local branch of Central Bank of India was arrested in Berhampur in Odisha for the alleged illegal transfer of Rs1.5 crore into his bank account, reports PTI quoting a Commissioner of Police.

Abhayanand Paswan, probationery officer from the Dwarakanagar branch of the bank, was arrested and cash worth Rs1.48 crore was recovered from him, Commissioner of Police J Purnachandra Rao said during a press conference.

Assistant general manager of the branch G Venkata Subba Rao had lodged a complaint against Paswan on 29th June alleging illegal diversion of Rs1.5 crore into his personal account.

City police had appointed a special team to track the accused.

According to Rao, the accused had gone on sick leave from 27th June and began working in a private bank in Jharkhand.

The fraud was detected after an internal audit conducted by the bank.

The bank officials traced the transactions of the accused in Odisha, as he had started withdrawing money from various ATM centers there, following which, a special police team went to Odisha and arrested the accused and recovered the cash from him.

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COMMENTS

T D Sharma

5 years ago

He ought to have waited for a few more years of experience, as a very large number of bankers do, before embarking on the "self help" project! Every success has a murky past. This young chic was clearly in a hurry in a field which is very common. Like, in the income tax department, the IRS officers and the newly promoted ITS (from the already corrupt rank of inspectors) start earning money as bribes rigt from day one in chair, but then that is what the tax payers and their professional representatives want too. What was the big hurry for Mr. Paswan?

RBI for debt recast of textile units on case-by-case basis

The special window will be provided by all banks to the textile sector to consider debt recast between 1st August and 30 October 2012

 

New Delhi: Rejecting across the board restructuring of loans for the cash-starved textile sector, the Reserve Bank of India (RBI) has asked banks to consider debt recast for the industry on a case-by-case basis, reports PTI.

Banks have been advised to look at debt recast on a case-by-case basis and special window will be provided for restructuring, official sources said.

The special window will be provided by all the banks to the textile sector between 1st August and 30 October 2012, sources said.

The Finance Ministry has asked banks to consider stressed loan accounts in the textile sector for restructuring, including second restructuring, so that viable loan accounts are revived and the financial health of the units are restored.

The sector has been hit by a sharp volatility in cotton yarn prices and poor domestic and global demand.

As a result textile units were facing difficulty in repaying term loans and financing working capital and demanded debt restructuring for the entire sector.

Textile industry associations were seeking a two-year moratorium on long term loans.

The total outstanding debt of textiles sector is estimated at Rs1.6 lakh crore of which debt of Rs35,000 crore require restructuring.

According to a senior bank official, large borrowers in man-made and natural fibres were relatively safe, and the problem was only in the small and medium segments.

The softening of cotton prices are expected to improve the profitability of the sector and companies would be in a position to service their loans, the official added.

In order to deal with the global meltdown triggered by the Lehman Brothers crash, RBI brought in a special dispensation providing for a second restructuring for the entire textile sector in 2008.

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COMMENTS

MAHENDER

5 years ago

WHAT ABOUT COTTON GINNING FACTORIES

Savings account interest rates to stay at 4%, says Puri

The HDFC Bank MD and CEO said only a couple of banks have increased their pricing because they were not getting traction on the savings deposits front

 

Mumbai: Terming the impact of Reserve Bank of India (RBI)'s decision to deregulate savings accounts rates last year as 'insignificant' for HDFC Bank, Aditya Puri, its managing director and chief executive has said depositors should be content with 4% interest offered by larger lenders, reports PTI.

"The deregulation of the savings account has not had a substantial impact on our growth," Puri told shareholders at the AGM over the weekend.

"The savings account is a transaction account and there is a cost attached to it. So, 4% rate is fair and that's why you see most of the larger banks have not changed it," he said.

Puri further said only a couple of banks have increased their pricing because they were not getting traction on the savings deposits front.

Following RBI's move last October to lift the interest rate cap of 4% on savings account, a few lenders like YES Bank, Kotak Mahindra Bank and Saraswat Bank increased their offerings up to seven%, giving rise to expectations that there will be a flight of deposits to these lenders.

However, bigger banks, including State Bank of India, ICICI Bank and HDFC Bank, which enjoy a very high%age of the cheaper current and savings account (CASA) deposits, maintained a status quo keeping the savings rates unchanged.

HDFC Bank's CASA share in the total base fell to 46% as of 30th June, versus 49.1% a year ago on a lower growth in current account deposits.

However, there was a growth of 18.4% on savings deposits to Rs76,674 crore, according to Q1 numbers.

Puri said economic feasibility requires a balance of at least Rs7,000 in every savings account as a host of services are to be offered free of charge to the account-holder.

He recommended the fixed deposit route to all the depositors who want a larger interest rate on their deposits.

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COMMENTS

T D Sharma

5 years ago

This will only act as a positive disincetive to saving and encourage consumerism. The dishonest motive is too eloquent.

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