'Corruption in PSBs halved in last one year'

Corruption cases in public sector banks have reduced by half in the past one year, chairman of the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, E M Sudarsana Natchiappan, said on Wednesday.

"Corruption cases (in public sector banks) have more than halved as a result of systemic changes in banks," Natchiappan told reporters after his meeting with heads of six public sector banks.

The panel discussed issues related to the working of the vigilance system in the banks at the meeting.

Banks, however, need to put in place proper systems and procedures to contain cyber crime, which could take place as a result of banks going in for e-transactions in a big way, Natchiappan said.

On the systemic changes introduced by public sector banks, Natchiappan said that banks had introduced centrally-managed bank loan system, wherein decisions about giving advances were taken at the branch manager and regional manager level.

"The higher level of advances in this system has to be cleared at the Board level," he said.

"There is also a reduction in corruption cases related to settlement of non-performing assets, and this is because all decisions related to NPAs are taken by a group of officers and not a single officer," he said.