The crisis-ridden United Bank of India is under the Central Vigilance Commission’s scanner for under reporting its NPAs or bad loans.The anti-corruption watchdog has sought a report from the Finance Ministry about the bank underreporting its gross NPAs that rose by 188.3 per cent to `8,546 crore at the end of December 2013. It had `2,963.8 crore of bad loans as on March 31, last year.
The CVC has asked for the report on the basis of a complaint filed about the alleged irregularities in the bank. “A factual report has been sought from Department of Financial Services (DFS) under Finance Ministry on a complaint against the United Bank of India (UBI),” a senior CVC official said.
According to laid out rules, DFS has a maximum of 90 days to send the factual report to the anti- corruption watchdog. The Commission has already received a report on the matter from the bank’s Chief Vigilance Officer (CVO), who acts as a distant arm of the CVC.
Sources said there were allegations against the bank about ‘underreporting’ of NPAs and officials said that a DFS probe will lead to detailed understanding of the enormity of the situation.
Meanwhile, with an administrative probe in the matter already underway, the Finance Ministry recently accepted the bank chairman, Archana Bhargava’s application in which she has sought voluntary retirement citing health grounds.
Bhargava, took over as CMD on April 23, 2013, her term was due to end on February 28, next year. The government is looking for a replacement for Bhargava. Sources said that it is probably after Bhargava’s voluntary retirement that the Department of Personnel and Training had come out with a directive that no such request can be accepted if a probe is pending.
According to the new rules notified by the DoPT on February 27, it shall be open to the appropriate authority to withhold permission to a government servant if the he or she is under suspension or if a charge sheet has been issued and the disciplinary proceedings against him or her are pending.
The DoPT said that the rules were revisited as per a 2010 judgment by the Central Administrative Tribunal. (With agency inputs)