Corporation Bank chief refutes allegations of irregularities

New Delhi: Corporation Bank chief Ramnath Pradeep today said he will clarify his position on allegations of irregularities in loan sanctioning before the authorities and termed the charges as professional hazards.

"We have prepared the report and we are submitting whatever questions have been asked by the Finance Ministry. See, these are professional hazards. We (all) are facing it and I am also facing it. I have nothing to hide," Corporation Bank Chairman and Managing Director said on the sidelines of a seminar organised by the PHD Chamber here.

The Finance Ministry has asked Corporation Bank to submit a detailed report and sought clarifications on allegations levelled against him.

Pradeep is facing charges of sanctioning loans in violation of prudential norms, reportedly to a few companies and he is also said to have extended a big-ticket loan to a tower construction company that had already defaulted on payments to another state-run bank.

"We have prepared (our response) and we are not accepting anything," Pradeep said when asked about his response to Central Vigilance Commission (CVC) indictment.

He also said, "In Air India we have an exposure of Rs 1,300 crore. For me it is not an issue. It is a standard asset."

On the back of robust monitoring mechanism and system, the bank intend to become a zero net NPA bank by the end of the current fiscal.

"Because we have introduced very robust system of monitoring therefore we are confident that we should reach to that level -- our zero net NPA level (by March 2012)," he said.

Current net NPA level of the bank stood at 0.47 per cent at the end of June 2011.

Talking about the loan growth, he said, there is a possibility of moderation in credit growth on account of rising interest rate.

"Loan growth is expected to be lower than the target. Our target is 25 per cent on the loan side but probably there is a need to revisit may be around 22 per cent," he said.

Deposit growth would also be lower at 20 per cent, as against the original target of 22 per cent, he said.

Source: Financial Express