Citizens' Issues
SBI silent on board meeting that granted Mallya loans, to avoid probe issues: RTI Activist
The State Bank of India has declined to reveal the details of its board meeting in which loans were sanctioned to liquor baron Vijay Mallya, claiming that it could impede probe, an activist said here on Monday. Activist Anil Galgali, who had sought the information under Right To Information Act on the SBI's board meeting, has been spurned by the bank as it may lead to future hurdles for nabbing Mallya or filing cases against the former chief of defunct Kingfisher Airlines Ltd.
 
"My queries under the RTI pertained to the total quantum of loans extended to Mallya, the SBI board's agenda, proposal, approvals and minutes of the meeting in which the loan was sanctioned," Galgali said.
 
The SBI deputy general manager and public information officer of the Stressed Assets Management Branch said that the case is sub-judice, pending before an inquiry commission, and derived exemption from disclosure under the RTI Act's Section 8(1)(h).
 
This section indicates that the information which could impede the process of investigations or apprehension or prosecution of offenders, can be declined.
Galgali found it surprising that the SBI has even refused to disclose the names of the directors who attended the board meeting in which Mallya's loan proposals were finalised.
 
"It is important to also expose the people who helped defaulters like Mallya and for the SBI to provide details of its board meetings in which the loans were sanctioned," Galgali added.
 
He has now filed a first appeal challenging the SBI's response to his RTI query, arguing that since the meeting's agenda, approval resolution and minutes are already circulated in the banks, it would not hamper the ongoing procedures.
 
"The SBI authorities are also equally responsible for the loss of public funds for sanctioning huge loans to such people and should be arrested and prosecuted," Galgali added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

B. Yerram Raju

10 months ago

Annual Report of the SBI relating to the year of sanction would contain the names of the directors on the Board of SBI at the material time. Then one can easily ascertain who were absent in the Board that approved the proposal. For sure, there would be one RBi representative and two Central Government representatives. The Board has taken KF Brand as collateral!! How it valued and who valued at the material time the Brand also matters. It is such issues that may hurt the legal proceedings?

IndusInd Bank Q1FY 17 net profit up by 26% to Rs661.38 crore
Net profit  for  the  quarter (Q1FY17)  was  Rs661.38  crore  for IndusInd Bank, as  against  Rs525.04  crore  in  the  corresponding quarter of the previous year, showing a growth of 26%, according to a release from the bank.
 
Performance highlights for the quarter ended June 30, 2016 were:
 
(a) Operating profit for  the  quarter  was  Rs1,233.79  crore  as  against  Rs922.72  crore  in  the corresponding quarter of the previous year, showing a growth of 34%.
 
(b)  Net Interest Income  (NII)  was  Rs1,356.42  crore  as  against  Rs980.66  crore  in  the corresponding quarter of the previous year, registering a robust growth of 38%.
 
(c)  Net Interest  Margin  (NIM)  for  the  current  quarter  was  3.97% as  against  3.68%  in  the corresponding quarter of the previous year. 
 
(d)  Net NPA was at 0.38% as compared to 0.31% as on June 30, 2015 and 0.36% as on March 31, 2016.
 
(e) Total advances as on June 30, 2016 were at Rs93,678 crore as compared to Rs72,243 crore in the corresponding quarter of the previous year, recording a growth of 30%.
 
(f)  Total deposits as on June 30, 2016 were at Rs1,01,768 crore as compared to Rs77,693 crore in the corresponding quarter of the previous year, up by  31%. Total business at Rs1,95,446 crore.
 
(g) Increase  in  network  to  1,004  branches  and  1,885 ATMs  as  against  811  branches  and 1,543 ATMs as on June 30, 2016.
 
(h)  On 28 June 2016, the bank has commenced operations in International Finance Service Centre (IFSC) Banking Unit in Gujarat International Finance Tec City (GIFT), concluded the release from the bank.
 

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Strike in SBI associate banks on Tuesday
Around 45,000 employees in the five associate banks of the State Bank of India (SBI) will strike work on Tuesday, said a leader of the All India Bank Employees Association (AIBEA).
 
"Only the workmen (clerical and messenger cadre) will be on strike. However, work in the branches will be affected," C.H. Venkatachalam, the AIBEA General Secretary, told IANS.
 
He said the employees of SBI would not be on strike.
 
The union is opposed to the government's decision to merge State Bank of Bikaner and Jaipur (SBBJ), State Bank of Travancore (SBT), State Bank of Patiala (SBP), State Bank of Mysore (SBM) and State Bank of Hyderabad (SBH) with the SBI.
 
The government has also decided to merge the Bharatiya Mahila Bank with SBI.
 
He said the government was trying to divert the people's attention from the mouting bad loans in the banking sector by the merger move.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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