CVC Tight­ens Screws on Loan Ver­i­fi­ca­tion

Asks PSBs to draw up a 2nd layer of ver­i­fi­ca­tion of doc­u­ments sub­mit­ted by po­ten­tial bor­row­ers

The Economic Times - - Front Page - Rahul.Tri­pathi@ times­

New Delhi: The ris­ing num­ber of bad loans in public sec­tor banks, am­pli­fied by the Vi­jay Mallya case, has prompted the Cen­tral Vig­i­lance Com­mis­sion (CVC) to ask th­ese banks to draw up a sec­ond layer of ver­i­fi­ca­tion of val­u­a­tion re­ports and such doc­u­ments sub­mit­ted by a po­ten­tial bor­rower.

The anti-cor­rup­tion watch­dog has also ad­vised the state-run banks to re­work their pro­to­cols for faster iden­ti­fi­ca­tion of “stressed loans”. The move comes amid at­tempts by lenders to re­cover dues of .₹ 9,000 crore on loans made to the Mallya-founded King­fisher Air­lines. Mallya left for the UK on March 2, trig­ger­ing ac­tion by CBI and ED. The gov­ern­ment on Thurs­day moved Lon­don for his de­por­ta­tion. Tight Vigil Af­ter Mallya case, CVC ad­vises banks to hire con­sul­tan­cies or set up divi­sion for a sec­ond ver­i­fi­ca­tion of doc­u­ments

The com­pany’s chief ex­ec­u­tive of­fi­cer Tim Cook said the In­dian mar­ket was at the same stage of devel­op­ment as China’s about 7-10 years ago. The suc­cess of Sam­sung’s lat­est block­buster model Galaxy S7 launched last month and price drop on older pop­u­lar mod­els such as Galaxy S6 and Note 5 has turned the mar­ket in its favour, an­a­lysts said.

“The im­pact of Galaxy S7 sales was for half month in March and the full im­pact will be in the cur­rent quar­ter when we ex­pect Sam­sung may fur­ther ex­pand its lead in the pre­mium seg­ment con­sid­er­ing iPhone SE has been luke­warm de­mand till now,” said Coun­ter­point Research Se­nior An­a­lyst Tarun Pathak.

In­dus­try ex­ec­u­tives said Ap­ple is also los­ing ground in In­dia due to the huge on­line dis­count­ing on iPhones which had led the brick-and­mor­tar stores to cut down stock. This led Ap­ple to re­cently ask its dis­trib­u­tors in In­dia to bring about on­line and off­line pric­ing par­ity and stop ar­bi­trary dis­count­ing on iPhones. Emails sent to Sam­sung and Ap­ple did not elicit any re­sponse till Thurs­day press time.

In­dia is the lat­est war zone be­tween Ap­ple and Sam­sung with global smart­phone sales be­com­ing flat for the first time ever dur­ing Jan­uary-March.

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