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Short Foreign Credit to Become Harder to Get in the Wake of PNB Fraud
February 22, 2018
The recent PNB scam of whopping Rs. 11,300 crores has been an eye-opener not just for the public sector lender but the other banks as well. The majority of both private and public sector banks have started examining their current status of management processes to fix the gaps if there are any.
One of the major changes that have been brought by the banks now is the hike in the cost of foreign trade financing instruments (30-40 bps compared to 5-10 bps).
An executive from the Bank of Baroda said that in a bid to bring down the bad assets ratio it’s important to prefer quality over quantity in terms of buyers’ credit.
