Banks hire scores of oversight agencies to keep tabs on end-use of loans

With increasing cases of fund diversions, banks have come together and empanelled as many as 83 oversight agencies to keep a tab on the end-use of loans, State Bank chairman Rajnish Kumar said Thursday.

The chairm of the largest lender said there have been instances where an individual or a company has borrowed from one bank and at the same time uses a current account facility with some other bank to divert funds.

He also suggested that methods of lending will need to undergo change.

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