Mumbai: Widening the scope of investigation into the multi-billion dollar PNB loan scam, the Serious Fraud Investigation Office (SFIO) has summoned the top management of about 31 banks having exposure to Mehul Choksi-promoted Gitanjali Gems.
As part of its investigation into all loans extended to companies associated with Mr Modi and Choksi, SFIO is expected to question more officials from both private and public sector banks. The initial probe by investigating agencies has revealed that about 30 banks had discounted the bills based on PNB LOUs.
In a move that could bring more skeletons from cupboards of state-run banks, the finance ministry had asked them to closely scrutinise all non performing assets (NPA) above '50 crore to detect any signs of frauds.
Indian lenders have come under increased scrutiny after steps taken by the RBI under the governorship of Raghuram Rajan forced bank officials to stop ever-greening bad loans.
Bad loans, which include NPAs as well as restructured or rolled-over loans, have hit to '9.46 lakh crore at the end of September, which is 12.2 per cent of total loans, according to unpublished RBI data.
In the quarter ended December 2017 alone, a majority of state-owned banks had reported steep losses due to higher provisions against bad loans and absence of profits from treasury operations.
