The executives of LIC Housing Finance, Central Bank of India, Punjab National Bank, Bank of India received bribes valued at hundreds of millions of dollars from private finance firm Money Matters Financial Services, which acted as a “mediator and facilitator” of corporate loans and other facilities.
They were also gathering confidential business information from financial institutions. Rajesh Sharma of Money Matters paid a Rs. 25-lakh bribe to RN Tayal at the Bank of India. In return, Tayal allegedly assured him of two loans worth Rs. 500 crore for two different companies.
Corruption has long been a major problem in Asia’s third-largest economy.
Shares in LIC Housing Finance closed down 18 percent, Central Bank fell 8 percent, Punjab National Bank dropped 3 percent, and Bank of India slipped 6 percent on reports of the charges. Money Matters plunged 20 percent.
Eight top officials from Indian banks and financial firms were arrested on Wednesday on charges of taking bribes to grant corporate loans.
Corruption is on peak in our country.
How a common man believe any Financial Institution?
What Finance Minister has to say?