As the fraud at the Punjab National Bank allegedly by diamond czar continues to unravel, the problem of a high number of wilful defaulters in the banking system cannot be ignored, and these 5 banks have the highest numbers in their books.
In the mid of February, a hidden fraud of Rs 11,400 crore, which rose to Rs 12,700 crore, was detected. The alleged collusion of diamond czar Nirav Modi and a former employee of the Punjab National Bank to obtain fake Letter of Understanding (LoU) rattled the entire nation. While Nirav Modi has not been declared a wilful defaulter, the problem of a large number of wilful defaulters in the banking system is also one of the major problems alongside frauds.
According to the data collected by TransUnion Cibil on the basis of suit-filed accounts for wilful defaulters of Rs 25 lakhs and above as on December 31, 2017, the Punjab National Bank tops the list with 1,018 wilful defaulters. And it is isn’t the just the Public Sector Banks (PSBs) that have a high number of wilful defaulters, Axis Bank, too, get featured in the top 5 list.
With 1,018 wilful defaulter cases, PNB is at top of the list, followed by Union Bank of India with 779 cases, Axis Bank with 732 cases, Central Bank 666 cases, and Canara bank 487 cases. Although the number of wilful defaulters is high in Axis Bank, the total value is lowest among all 5. These five banks constitute a value of nearly Rs 2,900 crore from wilful defaulters, which they have understood to have lost.
Meanwhile, data compiled by FE Online from several written replies by the government in the Parliament show that between 2017 and 2017, as many as 12,787 bank frauds were detected at Indian banks in a span of just three years, and the loss arising due to frauds in the year 2016-17 for both public and private sector was Rs 16,789 crore. (Read full story)