The goverment has found serious irregularities in the functioning of the National Bank for Agriculture and Rural Development (Nabard), Finance Minister Jaswant Singh said in the Rajya Sabha Tuesday.
The leading agriculture bank did not comply with various provisions of the Banking Regulation Act, 1949, and failed on the parameters of the cash reserve ratio and statutory liquidity ratio, the minister said during the Question Hour.
It also did not follow the RBI rules in regard to income recognition, asset classification and the provisioning. This resulted in poor recovery performance of the bank which got burdened by high overdues and non-performing assets during 2001-02.
All this was a result of poor recovery performance, non-compliance with the Banking/Regulation Act and poor internal checks and controls and lack of professionalism in managing the affairs, he said.
UNI