Connect with us
Saturday,07-June-2025
Breaking News

Business

ABGSL scam: ICICI, SBI helmed by women when fraud detected

Published

on

Top women bankers headed the private ICICI Bank and public sector State Bank of India when the Gujarat-based ABG Shipping Ltd (ABGSL) mega scam of Rs 22,842 crore was quietly brewing.

While ICICI Bank was helmed by the high-profile Chanda Kochhar till October 2018, when she quit in a cloud of allegations, the SBI was captained by Arundhati Bhattacharya, who retired in October 2017.

Of the reported Rs 22,842 crore frauds, the ICICI Bank took the biggest hit of Rs 7,089-crore and SBI ranks third with an exposure of Rs 2,925 crore, with IDBI Bank Ltd. sandwiched in the second slot and duped of Rs 3,639 crore.

Interestingly, the SBI’s Forensic Audit Report (January 18, 2019) — on which the CBI finally lodged its complaint — covers the period April 2012-July 2017, when the ABGSL scam took place — and said the accused “colluded together and committed illegal activities, including diversion of funds, misappropriation, criminal breach of trust and for purposes other than for which the funds are released by the Bank.”

However, the banking unions and experts fume at the manner in which massive public monies have again been blown off in the scam and how the banks are now “shifting the entire blame on the borrowers”.

“Was the entire banking system sleeping during these goings-on. The Reserve Bank of India conducts audits and also has its representative on the bank boards. What were they doing at that time and what was their exact role in the scam,” demanded United Forum of Banking Unions Convenor Devidas Tuljapurkar.

Trade Unions Joint Action Committee (TUJAC) Convenor and banking expert Vishwas Utagi wondered how can the CBI ethically take at face value the SBI’s contentions that the bank officials are not involved, particularly when it has been duped of huge public funds, and whether the other consortium members have also adopted a similar stand.

“In such gigantic frauds involving a big banking consortium, all persons above the GM level are definitely responsible. Will the CBI investigate or connive with SBI? We demand the CBI should honestly investigate from the top — probe Chairpersons, Managing Directors, Directors, etc. to unravel the murky truth,” said Utagi.

Referring to the SBI’s purported ‘accommodating’ stance vis-a-vis AGBSL, All India Bank Officers Association (AIBOA) General Secretary S. Nagarajan said the banks are not sympathetic when it comes to even small Education Loans by needy students.

“Whenever such huge loans are cleared at the Consortium leader’s request, did the other banks cross-check, monitor the accounts or seem enhanced security? If not, then there is something fishy,” Nagarajan pointed out.

Virtually defending ABGSL, the SBI alluded to its glowing past performance of 165 vessels built in 16 years, how the global shipping industry crisis hit with a fall in commodity demand, prices, cancellations and no fresh orders even from defence post-2015.

“The company was finding it very difficult to achieve milestones, as envisaged in CDR. Thus, the company was unable to service the interest and installments on the due date,” said the SBI note to CBI, sounding like a tear-jerker.

Utagi said that since the fraud has been established, even the Enforcement Directorate (ED) and other agencies must also join the investigations to track the money trail and the ultimate beneficiaries of the public funds, as was done in the Punjab National Bank scam by diamantaires Nirav Modi-Mehul Choksi five years ago.

Tuljapurkar feels that since banks have made 100 per cent provisions for NPAs, there will be no new losses accruing from this, and called for a thorough probe despite the huge delays.

National

J&K CM Omar Abdullah makes passionate appeal for statehood restoration

Published

on

Jammu, June 6: During his welcome address to Prime Minister Narendra Modi in Jammu and Kashmir’s (J&K) Katra town on Friday, Chief Minister Omar Abdullah made a passionate appeal for restoration of statehood.

During his welcome speech for the Prime Minister, CM Omar Abdullah said, “Jenab-e-Wallah (exalted sir), when you inaugurated the Katra railway station towards the end of my first term as the Chief Minister, Manoj Sinha ji was the Union Minister of State for Railways.

“He has been promoted as the Lieutenant-Governor while I have been demoted from the Chief Minister of a state to that of a Union Territory. I am confident that your goodself will soon address the issue and announce statehood to J&K”.

He also praised the Prime Minister for making the dream of a rail link to the Valley a reality.

“I was in class 8 and since then I have been hearing about a rail link to the Valley. The dream has been realised in your time sir.

“The start of the train service to the Valley will save us from the loot of the airlines companies who hike airfare to Jammu from Rs 5,000 to Rs 25,000 whenever the Srinagar-Jammu highway gets blocked.

“I must also pay my gratitude to Atal Bihari Vajpayee, who declared the rail link to the Valley a national priority project and made financial allocations for it,” CM Omar said.

On the stage with PM Modi, CM Omar’s body language was very cordial as the PM engaged him in some close to ear talk.

He was also in the forefront of all the official functions on Friday, including the inauguration of the Chenab Railway Bridge, the Anji cable stayed railway bridge, the flag-off ceremony of two Vande Bharat trains, one from Katra to Srinagar and the other from Srinagar to Katra.

CM Omar was among the dignitaries who welcomed the PM on the stage before the latter’s address to the public in Katra stadium.

Continue Reading

Business

RBI reduces inflation forecast to 3.7 pc for 2025-26

Published

on

Mumbai, June 6: The RBI has revised its inflation outlook for 2025-26 downwards from the earlier forecast of 4 per cent to 3.7 per cent, Reserve Bank Governor Sanjay Malhotra said on Friday.

Taking all these factors into consideration, and assuming a normal monsoon, CPI inflation for the financial year 2025-26 is now projected at 3.7 per cent, with Q1 at 2.9 per cent, Q2 at 3.4 per cent, Q3 at 3.9 per cent, and Q4 at 4.4 per cent.

He pointed out that Inflation has softened significantly over the last six months from above the tolerance band in October 2024 to well below the target, with signs of a broad-based moderation. The near-term and medium-term outlook now gives us the confidence of not only a durable alignment of headline inflation with the target of 4 per cent, as exuded in the last meeting, but also the belief that during the year, it is likely to undershoot the target at the margin.

While food inflation outlook remains soft, core inflation is expected to remain benign with easing of international commodity prices in line with the anticipated global growth slowdown, Malhotra explained.

He pointed out that CPI headline inflation continued its declining trajectory in March-April, with headline CPI inflation moderating to a nearly six-year low of 3.2 per cent (y-o-y) in April 2025. This was led mainly by food inflation, which recorded the sixth consecutive monthly decline.

Fuel group witnessed a reversal of deflationary conditions and recorded positive inflation prints during March and April, partly reflecting the hike in LPG prices. Core inflation remained largely steady and contained during March-April, despite the increase in gold prices exerting upward pressure, Malhotra said.

The outlook for inflation points towards benign prices across major constituents. The record wheat production and higher production of key pulses in the Rabi crop season should ensure an adequate supply of key food items. Going forward, the likely above normal monsoon along with its early onset augurs well for Kharif crop prospects.

Reflecting this, inflation expectations are showing a moderating trend, more so for the rural households. Most projections point towards continued moderation in the prices of key commodities, including crude oil, the RBI Governor said.

However, at the same time, Malhotra had a word of caution. “Notwithstanding these favourable prognoses, we need to remain watchful of weather-related uncertainties and still evolving tariff-related concerns with their attendant impact on global commodity prices,” he added.

Continue Reading

International

Man shot in targeted attack in Australian state of Queensland

Published

on

Sydney, June 6: A man has been hospitalised with serious injuries following a targeted shooting in the Australian state of Queensland.

The Queensland Police Service said on Friday that emergency services were deployed to a house in Parkwood, 65 kilometres southeast of Brisbane, around 7:50 p.m. on Thursday in response to reports that a man had sustained gunshot wounds to his leg and other injuries to his hand.

According to media, the 21-year-old man was found at the scene with serious injuries and was taken to hospital in a stable condition.

A police statement said that initial inquiries indicated that the incident was a targeted shooting and that there was no ongoing threat to the public.

An investigation into the attack was ongoing and police commenced a search for the perpetrator.

In a separate incident, Australian police are investigating a fatal stabbing in a remote outback mining town west of Sydney.

Emergency services were called to conduct a welfare check at a home in Broken Hill, over 900 kilometers from Sydney in the far west outback of the state of New South Wales (NSW), just after 11:50 p.m. on Thursday.

Police officers arrived at the scene where they found a man, believed to be aged in his 40s, with stab wounds to his neck.

He was treated by ambulance paramedics but could not be revived and was declared deceased.

Local police established a crime scene at the house and have commenced an investigation into the man’s death with assistance from the NSW Homicide Squad.

Continue Reading

Trending