Frauds in public sector banks swell to Rs 6,078 cr

Frauds in public sector banks swell to Rs 6,078 cr

IT HAS been observed that the frauds in the banks are increasing. As per the data published, the amount of frauds has almost doubled in 2012-13 when compared with 2011 -2012. The total frauds in the banking sector including public, private and foreign banks which was Rs 3.182 crore from 273 accounts registered in 2011 -12 has gone up to Rs 6.210 crore contributed from 349 accounts in 2012-13. (This is the fraud above Rs one crore only)

As far as public sector banks are concerned, it was Rs 2.961 crore from 228 accounts in 2011 -12. which swelled to Rs 6.078 crore from 309 accounts in 2012-13.

However, in respect of old private sector banks, it decreased from Rs 63 crore (14 accounts) to Rs 49 crore (12 accounts). For the new private sector banks, it decreased from Rs 75 crore (12 accounts) to Rs 67 crore (24 accounts). In foreign banks, the frauds have decreased from Rs 83 crore (19 accounts) to Rs 16 crore (4 accounts).

A fraud is an act or omission intended to cause wrongful gain to one person (in this case the borrower) ami wrongful loss to the other (the bank), either by way of concealment of facts or otherwise. In a recent presentation. RBI has said that poor credit appraisal and low level of promoter equity have led to a jump in the number of loan related frauds, especially diversion of funds.