Yes Bank CEO Prashant Kumar has confirmed that the private sector entity will be conducting a forensic audit of accounts that may not be acting in good faith.- In an exclusive interview with Business Insider, Kumar clarified that the exercise will not necessarily be restricted to the top 10 accounts.
- According to him, bigger parties do get priority but any account acting suspiciously can come under the bank’s radar for further scrutiny.
“It’s not about the top 10. Wherever there’s a customer account where we have a fairly good sense of something wrong happening, we can always find out of the truth with a forensic audit,” Kumar shared exclusively with Business Insider during a #HangoutwithBI Twitter Live.
There is no ticket size, benchmark, or threshold but there’s obviously more on the line with bigger accounts. “Wherever you have a large number of loans, you need to prioritise. Priority will be more for bigger parties first,” said Kumar.
The ‘bigger parties’ include the companies under the Anil Dhirubhai Ambani Group (ADAG), the Essel Group, Essar Group, and Cox & Kings, according to the $4
What is a forensic investigation?
“A forensic audit is where we, as a bank, have suspicion in terms of what kind of transactions happened in that account,” explained Kumar. Suspicious transactions cover a wide array of exchanges, regardless of whether they occur in cash or otherwise.
According to the $4, this can include:
- The loan granted being used for purposes other than what the loan was specified for
- Where there’s no economic rationale
- When a transaction appears to be made under circumstances of unjustified complexity
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