Bank Scams Sahar Samay News 06 Jan 2011

CBI probing loan write-off by banks

The Central Bureau of Investigation (CBI) is looking into bad loan write-offs by some banks and financial institutions involved in a bribes-for-loans scandal, the Times of India reported on Monday.
Two of the banks, Punjab National Bank and Bank of India, have written off about Rs 400 crore (USD 87 million) in the first three months of this fiscal year, the newspaper said, without saying where it got the information from.
Eight executives from India's public and private financial institutions have been arrested in the scandal.
Those arrested include senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India.
The Times of India said a majority of the bad debt write-offs include defaults on loans extended to the real estate sector.
Officials at the banks and the investigative agency could not immediately be reached by Reuters for comment.
The Central Bureau of Investigation (CBI) is looking into bad loan write-offs by some banks and financial institutions involved in a bribes-for-loans scandal, the Times of India reported on Monday.Two of the banks, Punjab National Bank and Bank of India, have written off about Rs 400 crore (USD 87 million) in the first three months of this fiscal year, the newspaper said, without saying where it got the information from.Eight executives from India's public and private financial institutions have been arrested in the scandal.Those arrested include senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India.The Times of India said a majority of the bad debt write-offs include defaults on loans extended to the real estate sector.Officials at the banks and the investigative agency could not immediately be reached by Reuters for comment.