Forensic Audit Of Dena Bank, OBC Ordered After Reports Of Scam

The Finance Ministry has ordered a forensic audit following reports of scams to the tune of Rs 436 crore at the branches of Dena Bank and the Oriental Bank of Commerce.

GS Sandhu, secretary, Ministry of Finance, said, “These are instances which have happened at the lower/branch level because of lack of due diligence and non-adherance to the norms or procedures…So (it is) not fair to term the entire banking system or the individual bank going in that direction.

“The persons who are responsible are being taken to task, some disciplinary action is being taken and there are also some suspensions, some transfers…The investigation is on and further action will be taken based on that.”

Following a rise in scams in public sector banks, the Finance Ministry is considering various steps like strengthening of risk management, appointment of bank chiefs for longer tenures, etc.

According to Sandhu, “The most important part is strengthening of risk management. We are going to make it mandatory for all the senior officers in banks for officers of DGM (deputy general manager) or GM levels to undergo a compulsory risk management course before they are considered for their promotions for higher posts…We have already started work on this through some expert agencies.”