Deal involving clandestine agent costs bank Rs 69 mn: COPE

The Committee on Public Enterprises (COPE) has directed the HDFC Bank to take action against an employee who clandestinely functioned as an agent in a deal involving the CEB, causing losses to the bank to the tune of Rs. 69 mn.

During a recent meeting of COPE, the top management of the bank was questioned why punitive action hadn’t been taken against the person concerned. According to a statement issued by Parliament, although the losses caused to the bank, due to higher interests paid to the CEB for a fixed deposit, had been discussed at a COPE meeting way back on Nov., 2014, no action had been taken.

COPE has asked the Finance Ministry to inquire into that particular case and take action within a month. It was also revealed the HDFC Bank hadn’t been summoned by COPE since Nov., 2014.