Private sector lender, HDFC Bank has said that it has no plans to stop employing financial agents. The comment by the bank comes in a situation wherein the entire industry is calling for a more sagacious lending system and stopping employment of private agencies for loan syndication purposes.
"We have no plans to discontinue the services of our agents (DSAs) for loan syndication," said Aditya Puri, managing director of HDFC Bank.
The parent company, HDFC has said that it is still continuing to appoint agents for its retail deposits and not for corporate or retail asset sale.
The entire case came into prime light when CBI officials arrested major officials of banks and housing finance companies under charges of bribery in the country's present housing finance scam.
While SBI and IDBI Bank have their own loan syndication divisions, Uco Bank and Union Bank of India are reportedly setting up specialised divisions for this.
"Though there is no systemic error as of now, at the micro level there are some very weak strains in our banks' lending system and if something isn't done, it can go out of control", E&Y India national leader for global financial services Ashvin Parekh said.