NEWS & ADVICE : HOME LOANS
FM asks lenders to assess their loan exposure
By Joseph Samson
Nov 26, 2010
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The housing finance scam unfolded recently has shaken the industry. With many senior officials of top housing finance companies and public sector banks getting arrested, the finance minister Mr Pranab Mukherjee has asked all lenders to check their exposure in various companies where they have lent.

Mr Mukherjee has also directed the boards of financial institutions as well as public sector banks to undergo a fresh analysis of their non performing assets (NPAs).

The CBI chargesheet includes Money Matters, DB Realty, Pashmina Ltd, Mantri Realty, Sigrun Ltd., Entertainment World and Indore City Treasures amongst the companies while banks under the scanner include Bank of India, Central Bank of India, Punjab National Bank, Life Insurance Corporation (LIC) and its housing finance arm LIC Housing Finance Limited (LICHFL).

Still maintaining its initial stance on the racket as being a case of "alleged illegal gratification", a Finance Ministry statement said: "DFS also conveyed that as per information available with them, the asset quality in these cases has not been impaired".

Mr. Mukherjee has also directed the DFS, regulatory authorities and institutions to take immediate action in reviewing as well as furthe strengthening the process of loan approval.


 


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