Lok Sabha Question No. 227 (UNSTARRED), answered on 2023-12-04
Subject: CA Firms
Ministry: FINANCE
Asked by: D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINACIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO-227

ANSWERED ON MONDAY, DECEMBER 4, 2023/AGRAHAYANA 13, 1945 (SAKA)

## CA FIRMS

## 227. SHRI D.M. KATHIR ANAND

Will the Minister of FINANCE be pleased to state:-

- (a) whether the Government has reduced the engaging of CA firms doing Concurrent Audit, Internal Audit and stock Audits in Nationalised Banks across the country and if so, the details thereof;
- (b) whether the Reserve Bank and Public Sector Banks have decided not to have concurrent audit for Banks having turnover of less than Rs. 40 crore per year and if so, the details thereof; and
- (c) the total number of CA firms engaged by the PSBs in the last 3 years, year-wise and Bankwise?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(DR. BHAGWAT KARAD)

- (a) The Government does not engage CA firms for doing Concurrent Audit, Internal Audit and stock Audits in Public Sector Banks.

In respect of concurrent audit, Reserve bank of India (RBI) vide it's Circular dated September 18,  2019,  has  prescribed  that  banks  should  have  their  own  Board  approved  policy  covering sections, including, inter-alia , the scope of work to be entrusted to concurrent auditors, coverage of business/branches etc. Accordingly, banks are having their own board approved policy for concurrent audit.  Further,  Public  Sector  Banks  (PSBs)  are  having  their  own  board  approved policy on scope and applicability of internal and stock audit.

- (b) RBI has apprised that, they have not issued any instruction advising the PSBs not to have concurrent audit for Banks having turnover of less than Rs. 40 crore per year.
- (c) As  per  information  received  from  RBI,  Year-wise  and  PSBs-wise  details  of  the  total number  of  CA  firms  engaged  as  Statutory  Central  Auditors  (SCA)  and  Statutory  Branch Auditors (SBAs), in the last 3 years are annexed:

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Lok Sabha Unstarred question no. 227, regarding CA Firms Number of CA firms engaged by Public Sector Banks in the last 3 years

| Sl. No.   | Name of the bank      | FY 2020-21   | FY 2020-21   | FY 2021-22   | FY 2021-22   | FY 2022-23   | FY 2022-23   |
|-----------|-----------------------|--------------|--------------|--------------|--------------|--------------|--------------|
| Sl. No.   | Name of the bank      | No. of SCAs  | No. of SBAs  | No. of SCAs  | No. of SBAs  | No. of SCAs  | No. of SBAs  |
| 1.        | Bank of Baroda        | 5            | 2115         | 5            | 1702         | 5            | 1186         |
| 2.        | Bank of India         | 3            | 1372         | 3            | 1442         | 3            | 1820         |
| 3.        | Bank of Maharashtra   | 4            | 413          | 4            | 387          | 4            | 299          |
| 4.        | Canara Bank           | 4            | 2128         | 5            | 1783         | 5            | 1417         |
| 5.        | Central Bank of India | 4            | 903          | 4            | 993          | 4            | 816          |
| 6.        | Indian Bank           | 5            | 1148         | 5            | 1051         | 5            | 901          |
| 7.        | Indian Overseas Bank  | 4            | 666          | 4            | 588          | 4            | 439          |
| 8.        | Punjab National Bank  | 5            | 2146         | 5            | 1875         | 5            | 894          |
| 9.        | Punjab & Sind Bank    | 4            | 401          | 4            | 371          | 4            | 371          |
| 10.       | State Bank of India   | 14           | 4856         | 12           | 4006         | 12           | 3171         |
| 11.       | UCO Bank              | 5            | 604          | 4            | 504          | 4            | 377          |
| 12.       | Union Bank of India   | 6            | 2069         | 6            | 1701         | 6            | 1362         |

Source: RBI

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