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CBI arrests top officials of PSU banks, fin. institutions in connection with a
bribery case
The CBI on Wednesday arrested the CEO of LIC Housing Finance Ltd.; Secretary
(Investment), LIC; GM, Bank of India; Director, Central Bank of India; DGM, Punjab
National Bank; Chairman & Managing Director and two other officials of a Mumbai-based
private financial services company in a bribery case.
The CBI busted a racket wherein a private financial services company, its CMD and other
associates were allegedly bribing senior officials of public sector banks and financial
institutions for facilitating large-scale corporate loans. They were also gathering
confidential business information from financial institutions. Officers of top management
and middle management of various public sector banks and financial institutions viz. Bank
of India, Central Bank of India, Punjab National Bank, LIC & LIC Housing Finance Ltd.
were receiving illegal gratifications from private financial services companies who were
acting as mediators and facilitators for corporate loans and other facilities from financial
institutions. Searches were conducted at various locations in Mumbai, Delhi, Chennai,
Jaipur, Kolkata and Jalandhar, which resulted in seizure of incriminating documents. In
this regard, five separate cases have been registered and further investigations are going
on.
We continue to maintain our Neutral rating on Punjab National Bank and Bank of India.
However, on account of the negative news flow, we might witness some more correction in
these stocks. We maintain a positive view on the large private banks.
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