Once bitten, twice shy? Banks may review loan recommendations made on the basis of certifications by audit firm Pricewaterhouse, which has come under attack after Satyam’s fraud.
A senior official at a public sector bank pointed out that PW were the auditors for the erstwhile Global Trust Bank as well which was later taken over the state owned Oriental Bank of Commerce. “There may not be any formal decision on the issue but it is obvious that banks will be wary to lend to those with PW certification,” the official said.
The All India Bank Employees Association said that PW should be blacklisted so that such incidents are averted in the future. “We want PW to be completely blacklisted so that in the future, banks do not have to lend to any company audited by the firm,” C H Venkatachalam, secretary, AIBEA, told Hindustan Times. The issue would be brought to the fore of the Indian Banks’ Association, he said.