Reserve bank: government orders forensic audit on OBC, Dena Bank for Rs 436 crore scam

MUMBAI: Government launched forensic audit of state-run Oriental Bank of Commerce and Dena Bank after uncovering suspected scam, in which lenders allegedly embezzled valuable funds of Rs 436 crore from their fixed deposit customers.

“A forensic audit has already been ordered,” Financial Services Secretary GS Sandhu said today, when asked about the alleged scam, adding that some suspensions had been initiated by authorities in this regard.

He was quick to add, however, that this is a case of an aberration at the individual agent level and not a systemic one.

“These are cases that happened at the lower level, at the branch level due to lack of due diligence or failure to follow standards and procedures,” Sandhu said.

The lenders are said to have engaged in siphoning off the money (Rs 180 crore by OBC and Rs 256 crore by Dena Bank) received in the form of fixed deposits.

“Those responsible are being taken to task, there have been suspensions, transfers and investigations are ongoing,” Sandhu told reporters at an event organized by the real estate agency Nardeco.

The finance ministry official added that the government has also flagged the problem of risk management by state-owned banks, saying the deputy managing director and senior GM officers will need to take a course in risk management before moving on. be considered for promotion.

The development comes less than a fortnight after Syndicate Bank SK Jain Chairman and CEO was arrested in a corruption case for allegedly receiving Rs 50 lakh from Bhushan Steel and another company for increasing their credit limit .

The reserve bank’s newly appointed deputy governor, SS Mundra, has taken the matter seriously, saying more regulatory awareness is needed.

“There are cases of individual failures, but there is a certain process for it. We would definitely look at it. I think the regulations available are strong. Same place.


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