Indian banks took about Rs 70,000 crore hit owing to frauds in last three fiscals, shows RBI data

The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17 and 2017-18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively

Press Trust of India August 07, 2018 17:00:32 IST
Indian banks took about Rs 70,000 crore hit owing to frauds in last three fiscals, shows RBI data

New Delhi: Indian banks reported a total loss of about Rs 70,000 crore due to frauds during the last three fiscals up to March 2018, the Rajya Sabha was informed on Tuesday.

The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17 and 2017-18 was Rs 16,409 crore, Rs 16,652 crore and Rs 36,694 crore, respectively, Minister of State for Finance Shiv Pratap Shukla said in a written reply quoting RBI data.

The minister said that data of frauds is as per the year of reporting and not the year of occurrence of fraud or sanction of loan, letter of undertaking, which may might be of an earlier period.

Indian banks took about Rs 70000 crore hit owing to frauds in last three fiscals shows RBI data

Representational image. Reuters.

The minister also informed the House that gross advances by SCBs increased from Rs 25.03 lakh crore as on 31 March, 2008, to Rs 68.75 lakh crore on 31 March, 2014.

As regards the stressed assets in the banking system, Shukla said the spurt was due to aggressive lending practices, wilful default, loan frauds, corruption in some cases and economic slowdown.

Replying to another question, he said as per RBI data, there were 139 borrowers with aggregate gross NPAs of more than Rs 1,000 crore.

Shukla said the RBI has apprised that it issued directions to banks in June 2017, instructing them to file applications for initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IPC) in respect of 12 borrowers.

The 12 borrowers had cumulative fund-based and non-fund based outstanding amount of Rs 1,97,769 crore as on 31 March, 2017.

"It subsequently issued further directions to banks advising them to finalise and implement resolution plans in respect of 29 accounts by 13 December, 2017, failing which these too had to be referred to CIRP under IBC," Shukla said.

The cumulative fund-based and non-fund based outstanding amount of these accounts was Rs 1,35,846 crore, as on 30 June, 2017.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

India sees 92,071 new infections in 24 hours, tally crosses 48 lakh; Manish Sisodia isolates self after positive test
India

India sees 92,071 new infections in 24 hours, tally crosses 48 lakh; Manish Sisodia isolates self after positive test

The Lok Sabha and Rajya Sabha met on Monday for the Monsoon Session under unusual circumstances created by the COVID-19 pandemic, with the two Houses convening in separate shifts, and strict physical distancing being maintained.

BJP likely to move motion seeking 'strong action' against Opposition MPs for row in Rajya Sabha, says source
India

BJP likely to move motion seeking 'strong action' against Opposition MPs for row in Rajya Sabha, says source

This comes after 12 Opposition parties moved a no-confidence notice against Rajya Sabha deputy chairman Harivansh over the manner in which the bills were passed in House

BJP's Ashok Gasti dies of COVID-19; newly-elected Rajya Sabha member breathes his last at Bengaluru hospital
India

BJP's Ashok Gasti dies of COVID-19; newly-elected Rajya Sabha member breathes his last at Bengaluru hospital

Condoling Gasti's demise, Prime Minister Narendra Modi said he was passionate about empowering the poor and marginalised sections of society