August 20, 2014 5:57 PM

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Govt orders forensic audit on OBC, Dena Bank in fixed deposits scam

The government has initiated a forensic audit of the state-run Oriental Bank of Commerce and Dena Bank. The move comes after some reports suggested that OBC had allegedly siphoned off Rs. 180 crore and Dena Bank, Rs. 256 crore from their fixed deposits customers.Speaking to reporters in Mumbai today, Financial Services secretary GS Sandhu said, the government has initiated an investigation apart from suspending and transferring some of the employees allegedly involved in the scam. He was, however, quick to add that it is a case of aberration at an individual level and not systemic. Saying that the instances have occurred at the branch level because of lack of due diligence or non-adherence to norms, Mr. Sandhu said, the government has already flagged the issue of risk management by state-run banks. He added that deputy GM and GM-rank officers will now have to undergo a course on risk management before being considered for promotion.Meanwhile, newly-appointed Reserve Bank Deputy Governor SS Mundra also took serious cognizance of the matter. Mr. Mundra said that although the regulations which are available are robust; there is certainly a need for greater sensitisation of officers.The development comes within a fortnight of the arrest of Syndicate Bank chairman and managing director SK Jain in a corruption case.

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