Follow lending norms or NPA woes will mount: Goyal

INSUBCONTINENT EXCLUSIVE:
MUMBAI: Interim finance minister Piyush Goyal Tuesday warned banks that if they did not follow the due process and go against prudential
lending norms, the problem of bad loans count will mount in the country where public opinion is getting shriller against financial
profligacy. Speaking at the State Bank of India conclave in downtown Mumbai, Goyal said that if there has been any wrongdoing in the loan
process, there has to be culpability. These comments come at a time when several bank CEOs have come under the scanner of investigative
agencies and law enforcement after some loan accounts turned sour. Bankers were seemingly held accountable for taking bonafide decisions,
something that is bothering the current banking leadership that may face questions in the future if some of the moves they now took were to
turn commercial failures. Bankers were disappointed that R Marathe, CEO of Bank of Maharashtra, was recently arrested by the state police
after the borrower failed to repay deposits to deposit holders on the ground that there were irregularities in lending. Piyush Goyal said:
But it will get sorted out through the legal process
the Centre, while Rajnish Kumar, chairman of State Bank of India, said that the probe agency has acted beyond its reach. Goyal said that
genuine business failures have to be addressed through resolution and that everything cannot be sent for liquidation as it cannot be the
panacea for all ills
been situations where loans have been diverted