Public sector lender, Bank of India has said that it has a valid loan approval system so as to check any kind of faulty task in giving out loans to corporates. The statement from the bank comes after CBI arrested General Manager of the bank, RN Tayal in connection with the major housing finance loan scam.

"....our bank has a robust system to take action wherever there is any wrong doing," Bank of India's Executive Director N Seshadri was reported saying.

"Incidentally, nothing has gone wrong on process with the bank...if you really talk about it... it is an aberration and we will have a look at it when we have full details (with us)," Seshadri said.

Speaking in anwer to the query on whether action would be taken against the official charges of fraud, he said that appropriate steps would definitely be taken against the official.

"We just got (his) details yesterday and there is a specific guideline...(and)there is a process (for action)..but action will definitely be taken against the official," he said.

However, he said, "no individual in the bank can influence such type of loans."

The lender has 3.2% exposure in home loan financing. "We have very small exposure towards real estate sector," Seshadri quoted.

"There is a liquidity pressure and in my view, definitely, there is a case for increase in deposit and lending rate by 50 basis points in 3 to 6 months," he said.