CVC Tightens Screws on Loan Verification
Asks PSBs to draw up a 2nd layer of verification of documents submitted by potential borrowers
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.