State-owned Rural Electrification Corporation Ltd. has not received any directive from the finance ministry regarding scrutiny of its stressed assets, said Chairman and Managing Director PV Ramesh.
“We've been more proactive than any other financial institution in terms of assuring that our assets perform well,” Ramesh told BloombergQuint in an interview, denying a report in business daily Financial Chronicle which stated that the government has asked for a precautionary scrutiny of all loans sanctioned by power finance companies such as Power Finance Corp. Ltd. and REC.
The scrutiny, according to the report, is to detect signs of wrongdoing similar to the one seen at Punjab National Bank, where diamond merchant Nirav Modi and his business partner and uncle Mehul Choksi allegedly defrauded the lender of Rs 12,700 crore.
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Watch the full interview here.
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