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PSU banks incur 22,743 Cr loss to banking frauds between 2012 and 2016

By Chennabasaveshwar

Union Minster Ravi Shankar Prasad citing Reserve Bank of India report recently told Parliament that Public Sector Banks in India lost at least 227.43 billion (Rs 22,743 crore) due to fraudulent banking activities between 2012 and 2016. The RBI report was released last March.

PSU banks incur 22,743 Cr loss to banking frauds between 2012 and 2016

Quoting RBI data, Ravi Shankar Prasad said, banking fraud worth Rs 1.79 billion in over 25,600 cases are reported up to December 21, 2017. According to RBI, during the first nine-months of 2016-17, 455 cases of fraudulent transactions of Rs 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.

Between April and December 2016, a total of 3,870 fraudulent cases were reported involving Rs 177.50 billion, which were facilitated by 450 private and public sector employees.

State Bank of India's 64 employees , 49 of HDFC Bank and 35 employees of Axis Bank were involved in facilitating these transactions.

Also, as per a report by IIM Bangalore, profitability severely hit by rising trend of non-performing assets (NPAs), especially for the PSBs. Apart from global and domestic slowdown, but there is some evidence of a relationship between frauds and NPAs as well. According to the report, more than 95 percent of fraud cases and the amount involved in fraud comes from commercial banks.

OneIndia News

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