The Congress on Saturday demanded a CBI probe into the affairs of the scam-hit Sri Guru Raghavendra Cooperative Bank.
"It was because of our agitation that the cooperation minister (S T Somashekar) assured us that the investigation would be handed over to the CBI. But, the subject did not come up in Friday's Cabinet meeting. We're waiting to see if it will come up in the next meeting," Congress MLC UB Venkatesh said.
The scam-hit bank, Venkatesh said, had won laurels from the RBI for 11 years. "In 2017, there were 0.5% non-performing assets (NPA). This jumped to 94.56% in 2019. In just two years, losses rose significantly. When asked, the RBI said an audit is needed from 2013-14 onwards. It's been three years since the bank shut down. Not a single rupee has been recovered. Losses stand at Rs 1,294 crore," he explained, adding that most of the loans are "bogus" and the government knows who the defaulters are.