Total Fraud Amount in PSB over Rs 19,964 crore in total 2,867 cases in April-June

Public sector banks (PSBs) reported frauds worth over Rs 19,964 crore in total 2,867 cases during the April-June quarter of the ongoing fiscal year, according to a reply to an RTI query. The country's largest lender State Bank of India (SBI) saw the highest number of fraud cases; however, Bank of India was the worst hit in terms of value, as per a reply from the Reserve Bank on frauds reported by these lenders to RTI activist Chandra Shekhar Gaur.

Of the 12 PSBs, SBI reported the maximum 2,050 fraud cases involving Rs 2,325.88 crore during April-June 2020.

Bank of India took the biggest hit in terms of valuation at Rs 5,124.87 crore in 47 cases, followed by Canara Bank Rs 3,885.26 crore in 33 cases, Bank of Baroda Rs 2,842.94 crore in 60 cases, Indian Bank Rs 1,469.79 crore in 45 cases, Indian Overseas Bank Rs 1,207.65 crore in 37 cases and Bank of Maharashtra Rs 1,140.37 crore in 9 cases.

As compared to these, the second largest public sector lender Punjab National Bank (PNB) reported much less amount of fraud at Rs 270.65 crore, even as the number of cases stood at 240.

Among others, UCO Bank had Rs 831.35 crore as fraud reporting in 130 cases, Central Bank of India Rs 655.84 crore in 149 cases, Punjab and Sind Bank Rs 163.3 crore in 18 cases and Union Bank of India reported the lowest amount of fraud at Rs 46.52 crore in 49 cases.

The data may change subject to rectification/updation made subsequent to first reporting by banks (in respect of individuals frauds), the RBI said in the reply.

Amount involved does not equate with the loss suffered by the reporting bank. Further, the entire amount lent in case of borrowal accounts need not have been diverted by the borrower/fraudster. In case of borrower accounts, amount involved may refer to the amount outstanding in the books of the reporting bank," it said.

Source Economics Times