LIC Housing Finance, which is in the eye of the loan scam, on Monday said that outstanding loans to the tune of Rs 389 crore are under the scrutiny of the Central Bureau of Investigation (CBI), but claimed that these are performing loans with a collateral of over Rs 1,000 crore.
The board of the company which met in Mumbai on Monday observed that the preliminary report prepared by Committee of General Managers’ confirmed that “the loans are performing, documentation is in order, the outstanding loan of cases under scrutiny by CBI is Rs 389 crore which are performing and the value of security against these loans is over Rs 1,000 crore.” The GMs’ committee was constituted to examine the cases under scrutiny.
The total loan portfolio of the LIC-promoted company, as on October 31, 2010, is Rs 44,569 crore and the gross NPA is 0.75 per cent (including project loans).
“The board authorised the audit committee to go through the General Managers’ report and other relevant aspects in detail and give suggestion for further strengthening of internal systems and controls, if required,” the company said.
However, the company did not specify the acts of omission and commission of its former CEO RR Nair, who is now in the CBI custody.
Meanwhile, Vijay Kumar Sharma took charge as the chief executive officer of the scandal-hit company and said putting the company back on the growth path would be his first objective. The prime agenda will be “to put LICHFL on the growth path again”, Sharma told reporters after his appointment was ratified by the board of the company.
Sharma, who was earlier serving as the head of parent Life Insurance Corporation for the South Zone, asked investors not to “worry or panic”. LIC Housing stock had fallen 27.5 per cent to Rs 948.10 after the scam came to the light on last Wednesday.
Answering a question, Sharma said that there will be a review of the company’s accounts. According to the CBI, Nair and other bankers took bribes to clear loans of corporates in connivance with two top officials from Money Matters, who played the role of mediators.