He said a short term objective of good results instead of long term sustainability and failure of corporate governance mechanism are leading to growing fraudulent practices.
“These frauds are also occurring due to collective failure of the regulatory oversight mechanisms like statutory auditors, the independent directors, the board, the shareholders and other regulators. This is, where a lot of correction, is required,” said Sinha.
The CBI Director also highlighted “sharp rise” in Non-Performing Assets (NPAs) of commercial banks.
“The gross NPAs of the public sector banks was Rs 1,64,462 crore in March 2013 comprising 3.6 per cent of gross advances and are estimated to have grown further as on March 2014,” he said.
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