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.
"Hiring oversight agencies is one of the things being done by banks to prevent such misuse," Kumar told reporters.
He also suggested that methods of lending will need to undergo change.
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