Banks caught ABG Shipyard scam in a short time, account became NPA during UPA’s tenure: Sitharaman

Finance Minister Nirmala Sitharaman has said that the account of ABG Shipyard became NPA (Non-Performing Asset) during the tenure of the previous United Progressive Alliance (UPA) government and banks caught it in less than average time and now action is going on in this matter. .

“Banks will get credit in this matter,” Sitharaman told reporters after a meeting with the central board of directors of the Reserve Bank of India on Monday. They took less than average time to catch such frauds.”

The Finance Minister said that banks usually take 52 to 56 months to catch such cases and then take further action.

The Central Bureau of Investigation (CBI) has registered a case against ABG Shipyard Limited and its former chairman and managing director Rishi Kamlesh Agarwal, among others, in the country’s biggest bank fraud case. The case has been registered for fraud with a consortium of two registered banks led by ICICI Bank.

The ABG Shipyard scam is bigger than the Rs 14,000 crore fraud with Punjab National Bank (PNB) by Nirav Modi and Mehul Choksi.

Sitharaman said that during the tenure of the National Democratic Alliance (NDA) government, the health of banks has improved and they are in a position to raise funds from the market.

Addressing a press conference, Reserve Bank Governor Shaktikanta Das said the central bank’s inflation projections are quite “strong”. He said that from October 2021 onwards, inflation is on a downward trend.

“Inflation has been particularly high in the third quarter mainly because of the statistical factor i.e. the base effect,” Das said.