Investor sentiments impacted: IL&FS
In February, PNB detected fraudulent transactions at one of its branches in Mumbai.
Mumbai: The recent crisis in the country’s banking system has impacted investor sentiments, leading to some slowdown in the investment flow, a top official from IL&FS Financial Services said.
The crisis, however, gives an opportunity to improve the overall processes and to built up a strong system, IF&FS Financial Services MD and CEO, Ramesh Bawa, said on Wednesday.
When asked about the extent of impact of the banking crisis, Bawa said, “Huge...It (crisis in banking system) has already impacted investors sentiments.”
In February, PNB detected fraudulent transactions at one of its branches in Mumbai. The biggest ever banking fraud of more than Rs 13,000 crore was allegedly committed by Nirav Modi and associates.
Besides PNB, ICICI Bank is also embroiled in a controversy over alleged conflict of interest involving its CEO Chanda Kochhar and business dealings of her husband.
Another private lender, Axis Bank, recently saw curtailment of tenure of its MD and CEO Shikha Sharma to seven months following a nudge by the Reserve Bank of India in the wake high levels of non-performing assets in the bank.