1. Frauds worth Rs 11,022 crore detected in PSU banks in Apr-Dec

Frauds worth Rs 11,022 crore detected in PSU banks in Apr-Dec

PSU banks have reported over 2,100 fraud cases involving a sum of Rs 11,022 crore in the first nine months of the ongoing fiscal...

By: | New Delhi | Published: March 22, 2015 7:15 PM
Banks, Bank Union, IBA

In 2013-14 fiscal, there were 2,593 such cases involving an amount of Rs 7,542 crore. The figure has shot up to Rs 11,022 crore from 2,166 cases in the nine-month period ending December 2014. (PTI)

PSU banks have reported over 2,100 fraud cases involving a sum of Rs 11,022 crore in the first nine months of the ongoing fiscal, with PNB reporting the maximum number of such instances.

An analysis of the data available with the Reserve Bank shows fraud cases, involving amount of Rs 1 lakh and above, in 26 state-owned banks during April-December 2014 has already surpassed the 2013-14 figure.

In 2013-14 fiscal, there were 2,593 such cases involving an amount of Rs 7,542 crore. The figure has shot up to Rs 11,022 crore from 2,166 cases in the nine-month period ending December 2014.

Delhi-based Punjab National Bank (PNB) had 123 cases of fraud totalling Rs 2,036 crore, followed by Central Bank of India with 147 cases involving an amount of Rs 1,783 crore.

Although the number of such fraud cases is the highest in country’s largest lender State Bank of India (SBI) at 474, the total amount involved was less at Rs 1,327 crore.

Syndicate Bank reported 114 cases of frauds with total amount of Rs 749 crore involved, followed by Oriental Bank of Commerce (OBC) at 86 cases involving Rs 719 crore.

PSU banks report fraud cases of Rs one lakh and above to banking regulator RBI.

As per the data, Bank of Baroda (BoB) reported fraud worth Rs 597 crore, followed by IDBI Bank (Rs 507 crore), UCO Bank (Rs 424 crore) and United Bank of India (Rs 376 crore).

  1. S
    Shyamaprasad Bhattacharjee
    Mar 27, 2015 at 7:29 am
    The rising frauds indicate that banks fail to adopt preventative measures and the ineffective functioning of their vigilance departments. Though the vigilance department enjoys autonomy but in essence , in most of the banks, it is observed that functioning of this department cannot do justice to its autonomy. The another contributory factor of rising freuds is dispensing with onsite supervision by Reserve Bank of India being the regulatory authority. Inapt and malicious handling of credit portfolios add further aculations of such misdeeds. The central Govt should devise the policy-1] Restoration of onsite supervision by RBI 2] All big tickets borrowal accounts turning into NPAs should be investigated by separate agency to be formed in line of Central vigilance commission 3] The forensic audit should be carried out in all fraud related transactions by a separate agency in line of CAG.
    Reply
  2. C
    chandi roy
    Mar 28, 2015 at 8:04 pm
    i congratulate finacial express for publishing such news. bBUT why RBI OR GOI did not initiated any action? ALLthey are sleeping? why public money should be londering in this way? ON the other hand banks initiate legal action to a small defaulter.. Eagerly waiting for next news that action has been taken. thanks
    Reply
  3. I
    Ind
    Mar 28, 2015 at 9:49 pm
    PSU banks will ultimately collapse bringing down Indian economy into chaos and financial crisis. Government must privatise all PSU banks.
    Reply
  4. S
    Sadasivan
    Mar 22, 2015 at 9:19 pm
    The nature of frauds is not mentioned.Who [whether the banks themselves or others] was/were, the guilty person/s?Any convictions or ongoing cases?No mention.Corporate or individual? What about others?CobraPost Cobrapost Cobrapost.........
    Reply

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