SC raps PNB, orders CMD to appear in recovery case

The Supreme Court on Tuesday summoned the chairman-cum-managing director (CMD) of Punjab National Bank (PNB), expressing strong displeasure over what it described as “apparent connivance” of the bank's officers in simultaneously pursuing a debt settlement and an auction of the borrower's property.

- Utkarsh Anand

A bench of justices JB Pardiwala and Sandeep Mehta, while hearing the matter arising out of a writ petition decided by the Allahabad high court, warned that the credibility of nationalised banks would be at stake if such practices were allowed to continue unchecked.

“The day is not far when national banks will lose their credibility and in their auctions. There is apparent connivance of bank officials. There is connivance on the face of it and we need explanation from your top officers,” the bench observed, rejecting the plea of PNB's counsel to excuse the CMD from personal appearance.