“Issues of this magnitude are always dealt with locally and the top management of the bank including the chairman is not involved in taking such decisions,” Khara said.
The Indian banking industry is in a state of shock after Choudhary was arrested by Jaisalmer police following a complaint by a defaulter who lost his assets during a resolution process. Chowdhary was SBI Chairman Between 7 April 2011 to 30 September 2013.
The case refers to the ‘Garh Rajwada’ hotel project in Jaisalmer, which was financed by SBI in 2007. As the project was not completed for three years and a major promoter passed away in April 2010, the account went into a non-performing asset (NPA). ) category in June 2010. Subsequently, in 2014 the ₹25-crore loan was sold to Alchemist Asset Reconstruction Company (ARC), of which Choudhary became a director upon retirement from the bank.
Khara said the banking industry is working with the government to rectify the situation.
“The banking community through IBA has taken up the matter with the government authorities and I hope this matter will be behind us very soon. As far as SBI is concerned, we follow best practices and corporate governance and I can assure you that there is no irregularity in the said matter and the rules and procedures laid down by the bank were followed to deal with this account. We have got the structure and we are very confident that our people in the hierarchy will be like this. can decide the cases.” said.
He described the arrest as “unfortunate” and expressed confidence that his predecessor would be released unconditionally without any charges. Khara was talking to media persons in a post result conference call.
“This arrest of Pratip Choudhary is extremely unfortunate. Choudhary will be released unconditionally,” Khara said.