Year of Exits: Borrowers left as loans broke down, CEOs forced to leave
Year of Exits
The Nirav Modi scam
Billionaire diamantaire Nirav Modi and his uncle Mehul Choksi, in connivance with certain bank officials, allegedly cheated state-run Punjab National Bank (PNB) of about Rs 14,000 crore through issuance of fraudulent letters of undertaking.
Chanda Kochhar and her conflict of interest
The 56-year-old Kochhar, who rose through ranks to occupy the corner office of the prestigious institution, was mired in allegations of conflict of interest, lack of disclosures and quid-pro-quo while extending loans to the now-bankrupt Videocon Industries.
Subsequently, another complaint was filed against her and she had to eventually to say goodbye in October to the bank which she had joined as a management trainee in 1984.
Shikha Sharma and her stint at Axis Bank
Axis Bank's NPAs jumped over five-fold in two years till March 2017, while the net profit halved in the same period. It saw its gross bad loans ratio rise to 5.04 per cent by March 2017, from 0.96 per cent in March 2009, when Sharma had taken charge.
Several lenders, including Yes Bank, were asked by the RBI to disclose 'divergences' in their bad loan reporting. The central bank judged gross NPAs at Rs 8,373.8 crore at Yes Bank for 2016-17, as against the declared gross NPAs of Rs 2,018 crore.
RBI Governor Urjit Patel's unexpected exit
The resignation, however, followed a run-in with the government over several issues including autonomy of the central bank.