Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF FINANCIAL SERVICES 

RAJYA SABHA
UNSTARRED QUESTION NO. 2398
ANSWERED ON THE MARCH 19, 2013 / PHALGUNA 28, 1934 (SAKA)

 QUESTION
Fraud Cases in Public Sector Banks 

2398: SHRI RAJEEV CHANDRASEKHAR: 

Will the Minister of FINANCE be pleased to state: 

(a)   whether fraud cases in public sector banks have increased manifold in the recent past; 

(b)   whether these banks are funding high risk ventures without taking adequate precautions, and also breaching RBI norms in extending excess loans; 

(c)    if so, the details thereof for the last three years, year-wise and bank-wise with number of fraud cases reported in each bank and amount involved therein; and 

(d)   the details of preventive and other measures are being taken by the banks, RBI and Government in this regard? 

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA) 

(a), (b) & (c) : The Reserve Bank of India (RBI) has informed that the incidents of frauds reported by Public Sector Banks (PSBs) with amount involved in therein for the last three financial years is as under:                                                                                                                                                      (Rs in lakhs)

Sr.

No.

Financial Year

No. of frauds cases reported

Amount involved

 

1.

2009-10

3363

161268.15

2.

2010-11

3718

256900.48

3.

2011-12

3392

402532.04

4.

2012-13 (up to dec 2012)

2543

657391.40

The amount involved in fraud cases is showing an increasing trend. Bank wise details in this regard are furnished in Annex - I.

Banks follow instructions laid down by RBI. In case of any deviation, appropriate action is taken as per rules.

 (d) RBI as a part of its supervisory process also takes the following measures to prevent/reduce the incidence of frauds:

(i)     Sensitizes banks from time to time about common fraud prone areas through issuance of modus operandi circulars on various types of frauds and the measures to be taken by them.

(ii)   Issues caution advices in respect of borrowers who have defrauded the banks. 

In the past considering various concerns arising out of bank's operations, including incidence of frauds, RBI has advised banks to:

(a)   Introduce a system of concurrent audit;

(b)   Review working of internal inspection and audit machinery in banks by the Audit Committee of the Board of Directors;

(c)    Constitute a Special Committee of the Board to exclusively monitor frauds of Rs 1 crore and above.

(d)   In order to make third parties and professionals accountable, who have played a vital role in credit sanction/disbursement or facilitated the perpetration of frauds, banks have been advised vide circular dated March 16, 2009 to report to Indian Bank's Association (IBA). IBA in turn will prepare caution lists of such parties for circulation among the banks.

 

Bank Group

Bank Name

2009-10 FY

2010-11 FY

2011-12 FY

2012-13 FY (till Dec 2012)

Total number of cases

Total Amount involved in lakh

Total number of cases

Total Amount involved in lakh

Total number of cases

Total Amount involved in lakh

Total number of cases

Total Amount involved in lakh

Nationalised

Bank

Allahabad Bank

112

2371.25

110

4025.51

106

12121.30

116

30384.20

Andhra Bank

95

7001.75

59

2471.05

97

6901.84

63

11361.67

Bank of Baroda

233

3764.96

251

5726.72

184

5730.55

91

42376.19

Bank of India

221

5790.15

249

11683.37

228

50261.80

304

51589.54

Bank of Maharashtra

81

1847.43

95

6529.75

55

1327.45

33

3852.13

Canara Bank

151

6210.67

118

12243.09

125

38683.77

55

19498.90

Central Bank of India

165

8369.19

135

30883.05

117

3333.92

92

12852.43

Corporation Bank

87

1091.08

83

7548.27

107

5705.32

100

13608.29

Dena Bank

35

980.55

42

707.83

38

4951.94

23

21649.53

IDBI Bank Limited

121

22126.00

137

27590.38

266

11188.95

132

3719.99

Indian Bank

99

6250.15

104

3858.89

94

5793.67

75

15194.17

Indian Overseas Bank

134

10803.90

115

38948.59

134

51903.01

110

46003.58

Oriental Bank of Commerce

54

1133.46

89

11983.30

77

22702.74

44

14027.50

Punjab & Sind Bank

33

2855.52

37

740.15

23

4110.91

24

6691.59

Punjab National Bank

244

7620.35

358

9856.84

281

19561.85

247

65146.04

Syndicate Bank

200

5489.24

147

5847.77

117

3491.42

127

20266.80

UCO Bank

133

2968.08

247

13937.51

161

10286.46

62

34951.06

Union Bank of India

137

22433.80

141

5353.19

90

12546.03

101

69263.10

United Bank of India

60

2085.01

95

3111.60

116

21364.44

151

13295.27

Vijaya Bank

169

3970.34

71

3132.59

67

15560.20

31

40435.92

Total

2564

125162.88

2683

206179.45

2483

307486.97

1981

536165.90

SBI Group

State Bank of Bikaner & Jaipur

62

825.80

63

834.84

36

596.12

43

14325.49

State Bank of Hyderabad

42

6854.86

48

5148.32

59

1965.79

28

43322.13

State Bank of India

548

25502.60

784

29848.64

695

65434.57

432

41895.22

State Bank of Indore

27

221.80

5

27.09

 

 

 

 

State Bank of Mysore

28

328.05

36

13322.68

27

11261.37

9

306.28

State Bank of Patiala

58

1857.23

82

1098.51

52

8759.04

26

15905.77

State Bank of Travancore

34

514.93

17

440.95

40

7028.18

24

5470.61

Total

799

36105.27

1035

50721.03

909

95045.07

562

121225.50


Grand Total

3363

161268.15

3718

256900.48

3392

402532.04

2543

657391.40