Loans to ABG shipyard turned into NPA before 2014: Finance Minister Nirmala Sitharaman

New Delhi (PTI): Finance Minister Nirmala Sitharaman said on Monday that the ABG Shipyard account had become NPA under the old UPA regime and that banks had taken less time than normal to detect the fraud perpetrated by the shipping company. transport.

“…in this particular case with this type of measure, in fact I would have to say to the credit of the banks, they took less time than what is normally an average time to detect this type of fraud,” said the Finance Minister Nirmala. Sitharaman said at a press conference after addressing RBI board members.

The minister said banks normally take 52 to 56 months to detect such cases and initiate follow-up action.

The Central Bureau of Investigation (CBI) recently charged ABG Shipyard Limited, its former Chairman and Managing Director Rishi Kamlesh Agarwal and others with allegedly deceiving a consortium of two dozen lenders led by ICICI Bank.

The ABG shipyard fraud is far higher than that perpetrated by Nirav Modi and his uncle Mehul Choksi, who allegedly cheated the National Bank of Punjab (PNB) out of around Rs 14,000 crore by issuing fraudulent Letters of Undertaking (LoU ).

Sitharaman also said that under the NDA regime, the health of banks has improved and they are able to raise funds from the market.

Addressing the press conference, RBI Governor Shaktikanta Das asserted that RBI’s inflation projections are quite robust. He further stated that the dynamics of inflation, as of October 2021, is on a downward slope.

“It is mainly the statistical reasons for the base effect that lead to higher inflation, especially in the third quarter, and the same base effect will play out in different ways in the coming months,” Das said.

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