Banking sector rocked by over Rs 62,000 crore frauds in 3 years: RTI

NAGPUR: Even as Indian banking sector was rocked by one after another scam this year, allegedly triggered by diamond jewellery czar Nirav Modi and Mehul Choksi, an RTI reply revealed that frauds worth over a whopping Rs62,000 crore took place in last three fiscals in the country. These took place before the latest one to rock Punjab National Bank (PNB) involving Modi and Choksi.
In reply to a RTI query by activist Abhay Kolarkar, the Reserve Bank of India (RBI) provided a full list of 74 national and private banks where frauds took place in last three fiscals — 2014-15, 2015-16 and 2017-18. Topping the list is banking behemoth State Bank of India (SBI), which was defrauded by the scamsters by over Rs5,936 crore in last three financial years. It was followed by PNB with frauds worth over Rs5,471 crore, even before Modi’s cases came to light. PNB may take lead position if scams in 2017-18 fiscal are included in the list, according to Kolarkar, who is himself a retired banker.

The apex bank further stated that number of frauds and amount involved also increased in this period. From 4,639 cases in 2014-15, the number jumped to 5,078 in 2016-17, an increase of 439 cases or 9%. Similarly, swindles of over Rs19,455 crore were recorded in 2014-15, which jumped to Rs23,934 crore in just two years, increase of 23%.

Behind SBI and PNB, other nationalized like Bank of India (BOB), Bank of Baroda (BOB) and Central Bank of India are at third, fourth and fifth positions respectively in terms of swindled amount. IDBI and Allahabad Bank too find their names in the list, but they’re at 11th and 12th positions among the 74 banks.

As per RTI reply by central information officer SK Panigrahi, the list of top ten banks in quantum of fraud includes nine nationalized banks, with Axis Bank at seventh position the only private bank in the list. The rankings are given after calculating amount involved in frauds in last three financial years as provided by RBI. Only frauds of over Rs1 lakh have been taken into consideration.

SBI, India’s largest bank, not only leads in amount swindled but also in number of frauds. In last three years, it was rocked by 1,757 cases, almost double the next in line, Bank of Baroda (BOB). They’re followed by Axis Bank with 636, and Syndicate Bank with 552 cases.