A recent press report said that Mr. Ramnath Pradeep, Corporation Bank Chairman and Managing Director have disproved charges of inappropriately sanctioning big-ticket loans. He said that the bank’s net non-performing assets (NPAs) would not have been below one per cent of the total advances if the allegations were true.
Reports said that the finance ministry had called for explanation from the chairman and managing director on the basis of a report by the Chief Vigilance Commission (CVC) on irregularities in disbursing loans. The CVC, after complaints of irregularities in the disbursement of loans from the bank, had sent a special team in May to the bank’s headquarters to investigate the irregularities.
Mr. Ramnath Pradeep said that the ministry has just asked for a clarification, and that the bank has prepared its response. He said the bank was aiming to eliminate NPAs by the end of this financial year.