State Bank of India, the country's top lender, has been asked by the central bank to provide for losses on food grain-related loans issued to the Punjab government, chairman Arundhati Bhattacharya said on Monday.
She declined to comment on the quantum of SBI's exposure to those loans.
Local media had earlier reported about the discrepancy in food grain stockpiles in warehouses in Punjab purchased through bank loans from several state-owned banks.
“We are working with the regulator, as well with the banks and various government agencies to ensure that the matter with respect to food stocks is resolved satisfactorily,” India's junior finance minister said separately, speaking at a banking and finance conference in Mumbai.