WHEN INDIAN BANKS WERE DEFRAUDED

Public sector banks (PSBs) lost a total of ~227.43 billion due to banking fraud between 2012 and 2016, notes an IIM-Bangalore study. Ravi Shankar Prasad, electronics and information technology minister, recently told Parliament, quoting the Reserve Bank of India (RBI) data, that there had been over 25,600 cases of banking fraud worth ~1.79 billion reported till December 21, 2017. Data released by the RBI last March revealed that during the first nine months of 2016-17, 455 cases of fraudulent transactions of ~100,000 and above were detected at ICICI Bank, 429 at State Bank of India, 244 at Standard Chartered Bank, and 237 at HDFC Bank. Data shows 64 employees of State Bank of India, while 49 of HDFC Bank, and 35 of Axis Bank were involved in facilitating these transactions. Between April and December 2016, a total of 3,870 fraudulent cases were reported, involving ~177.5 billion, which were facilitated by 450 private and public sector employees.

2011

CBI finds some executives of Bank of Maharashtra, Central Bank, Oriental Bank of Commerce, and IDBI created 10,000 fictitious accounts and transferred ~1.5 billion worth of loans

2014

Mumbai police files nine FIRs against several PSB officials for fixed deposit fraud worth ~7 billion Electrotherm India cheated Central Bank of India out of ~4.36 billion

Bipin Vohra, a Kolkata-based industrialist, allegedly cheated Central Bank of India, receiving a loan of ~1.4 billion by using forged documents Bribe-for-loan scam implicating ex-chairman and MD of Syndicate Bank, S K Jain, involved ~80 billion of sanctioned loans

2015

An alleged fraud committed on Central Bank of India by employees of Jain Infraprojects to the tune of ~2.12 billion

Employees from various banks defrauded the system of ~60 billion in a foreign exchange scam, involving a dummy Hong Kong corporation

2016

386 accounts opened by four people in Syndicate Bank, defrauded the bank of

~10 billion, using fake cheques, letter of credits, and LIC policies

2017

CBI prepares charge sheet against ex-United Breweries chairman Vijay Mallya and 10 others for non-repayment of ~9.5 billion loans owed to IDBI

CBI registers FIR against five PSBs and six charge sheets against Deccan Chronicle Holdings for causing wrongful loss of ~11.61 billion Nilesh Parekh, Kolkata-based business tycoon, was arrested by CBI, due to loss of ~22.23 billion caused to 20 banks

CBI arrests promoters of the Abhijeet group and former DGM of Canara Bank, for causing a loss of ~2.9 billion to two PSBs

CBI files case against a former zonal head of the Bank of Maharashtra and a director of a private logistics company in Surat in connection with an alleged scam worth ~8.36 billion

2018

Enforcement Directorate arrests former Andhra Bank director, in an alleged ~5 billion bank fraud case, involving a Gujarat-based pharmaceutical company