Three days after CBI arrested Bank of India's General Manager (Delhi) RN Tayal , for his alleged role in the housing-finance scam , the bank on Saturday asserted it has a robust system in place to prevent any wrongdoing in advancing corporate loans.
"our bank has a robust system to take action wherever there is any wrong doing," Bank of India's Executive Director N Seshadri told reporters here today.
"Incidentally, nothing has gone wrong on process with the bank...if you really talk about it... it is an aberration and we will have a look at it when we have full details (with us)," Seshadri said.
When asked if the bank was contemplating any action against the official who was arrested by CBI on graft charges, Seshadri said that action would definitely be taken against him.
"We just got (his) details yesterday and there is a specific guideline...(and)there is a process (for action)..but action will definitely be taken against the official," he said.
However, he said, "no individual in the bank can influence such type of loans."
Bank of India has said that the companies under CBI scanner are not from realty sector but rather from the manufacturing sector. "In one of the case, we do not even disbursed so far...it was just sanctioned. In another case, a group of banks are advancing loans ," he said.
Bank of India maintains it has just 3.2 per cent exposure to the realty sector. "We have very small exposure towards real estate sector," he said.
When asked about apprehensions in the real estate players that loan disbursement to real estate sector might be reduced, he said, "I do not see any major changes (in loan advancement). it is just media hype."
On any likely changes in interest rates, Seshadri said deposit and lending rates were likely to rise in short time by half a percent due to liquidity pressure.
"There is a liquidity pressure and in my view, definitely, there is a case for increase in deposit and lending rate by 50 basis points in 3 to 6 months," he said.
The bank, which has a base rate of 8.50 per cent, is eyeing business of Rs 5 lakh crore by March 31, 2011 against Rs 4 lakh crore of business attained in 2009-10.
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