REC, PFC Bad Loans Rose Due to Lack of Due Dili­gence: CAG

The Economic Times - - Economy: Macro, Micro & More -

Gov­ern­ment au­di­tor CAG slammed state-owned REC and PFC for not fol­low­ing in­ter­nal guide­lines and RBI rules in sanc­tion­ing loans to in­de­pen­dent power pro­duc­ers that led to surge in bad loans. “REC and PFC did not con­duct ap­pro­pri­ate due dili­gence dur­ing credit ap­praisal and in the process as­sumed higher risks on the loan ac­counts,” the comptroller and au­di­tor gen­eral said in its re­port tabled in Par­lia­ment.


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