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India's Assocham says overreaction by banks could hurt credit flow.

Global Banking News-March 12, 2018--India's Assocham says overreaction by banks could hurt credit flow

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Global Banking News - 12 March 2018

Assocham, an industry body in India, has said that overreaction by banks and investigative agencies to the recent PNB fraud could hurt credit flow.

The INR126bn fraud came to light last month and involved some leading names in the jewellery business. Many banks are expected to write down significant amounts because of the fraud.

Supporting calls from industry for privatising public sector banks (PSBs) in the wake of the PNB scam, Assocham said that some immediate steps should be taken for capacity building in PSBs.

Assocham secretary general, D S Rawat, said, 'Following unearthing of the alleged scams and the media headlines, the banks are becoming cautious while there is a perceived public pressure on the regulators to act tough. So, it is time to show immense restraint and use the adverse situation as an opportunity to fix the systemic issues.'

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((Distributed via M2 Communications - http://www.m2.com))

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Publication:Global Banking News (GBN)
Geographic Code:9INDI
Date:Mar 12, 2018
Words:190
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