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BANKS MAY GET MORE TEETH IN FIGHT AGAINST DEFAULTERS

inMUMBAI: The finance ministry will back lenders in changing management of companies that wilfully default, tweak the rules of appointment of public sector bank chiefs, and make sure that bankers are not victimised. “A bona fide decision can also go wrong…we can’t penalise a person for that. He has to be protected. Otherwise, no one will take decisions.

 

So, we will protect the person where there is no collusion,” GS Sandhu, secretary, financial services, said here on Wednesday. His comments come at a time decision-making at state-owned banks has slowed down amid fears that officers who sanction loans could be pulled up by the Central Vigilance Commission (CVC) if an account turns bad.

 

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