Bank Frauds, Big and Small

India Today - - UPFRONT - Illustrati­on by TANMOY CHAKRABORT­Y

A re­cent re­sponse to an RTI re­quest re­vealed that public sec­tor banks, in the first quar­ter of this fi­nan­cial year alone, lost nearly Rs 32,000 crore through 3,000 cases of fraud. This, af­ter a record-break­ing Rs 71,500 crore worth of fraud was re­ported in FY19. The fi­nance min­istry has claimed to be turn­ing around the sit­u­a­tion with non-per­form­ing as­sets, and an­nounced un­prece­dented rates of loan re­cov­ery. Fi­nance min­is­ter Nir­mala Sithara­man, ear­lier this month, an­nounced the merg­ers of sev­eral state-owned banks in a bid to cre­ate larger, stronger, more sta­ble banks. But, in a slug­gish econ­omy, with the slow­est growth in six years, the merg­ers may dampen credit ac­tiv­ity and get in the way of an eco­nomic re­vival. We’ll also have to wait and see if larger banks have bet­ter mech­a­nisms to cope with frauds and bad loans.

`31,898.63 CRORE

Worth of scams per­pe­trated on public sec­tor banks in the first quar­ter of FY20, said the RBI. Na­ture of fraud un­re­vealed but 2,480 cases have af­fected 18 PSBs


Of these cases, 48.3% of to­tal, af­fected State Bank of In­dia, worth `12,012.8 crore. SBI sought 147 look­out cir­cu­lars for fraud­sters be­tween April and Au­gust this year

`2,855.46 CRORE

Worth of fraud de­tected by the Al­la­habad Bank in 381 cases, sec­ond only to SBI. And fol­lowed by Pun­jab Na­tional Bank re­port­ing `2,526.55 crore from 99 cases of fraud

`71,542.93 CRORE

Worth of fraud re­ported in 6,801 cases of fraud in FY19, said RBI. An un­prece­dented amount, up from `41,167 crore from 5,916 cases re­ported in FY18


In to­tal busi­ness of the newly merged PNB, Ori­en­tal Bank of Com­merce and United Bank, mak­ing it the sec­ond largest PSB


Frauds, worth ₹2.05 lakh crore, re­ported from FY09 to FY19: PNB (`28,701 crore, 2,047 cases); SBI (`23,735 crore, 6,793 cases); ICICI (`5,034 crore, 6,811 cases)


PSBs in In­dia, down from 27 in 2017. Merg­ers ear­lier this month re­duced 10 PSBs to 4: the 2nd, 4th, 5th and 7th largest PSBs in the coun­try

`89,189 CRORE

De­cline in NPAs af­fect­ing PSBs, from `8,95,601 crore in March 2018 to `8,06,412 crore in March 2019, said fi­nance min­is­ter Nir­mala Sithara­man in the Ra­jya Sabha

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