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SBI asked to make provisions on food grain loans to Punjab

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Reuters MUMBAI
Last Updated : Apr 18 2016 | 3:42 PM IST

MUMBAI (Reuters) - State Bank of India, the country's top lender, has been asked by the Reserve Bank of India (RBI) to provide for losses on food grain-related loans issued to the government of Punjab, chairman Arundhati Bhattacharya said on Monday.

She declined to comment on the quantum of SBI's exposure to those loans.

Local media had earlier reported about the discrepancy in food grain stockpiles in warehouses in Punjab purchased through bank loans from several state-owned banks.

"?We are working with the regulator, as well with the banks and various government agencies to ensure that the matter with respect to food stocks is resolved satisfactorily," India's junior finance minister said separately, speaking at a banking and finance conference in Mumbai.

(Reporting by Devidutta Tripathy and Suvashree Choudhury)

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First Published: Apr 18 2016 | 3:26 PM IST

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