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 complete lack of about Rs 70,000 crore attributable to frauds over the last three fiscals as much as March 2018, the Rajya Sabha was knowledgeable on Tuesday.

The extent of loss in fraud instances reported by scheduled business 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 mentioned in a written reply quoting RBI knowledge.

The minister mentioned that knowledge of frauds is as per the 12 months of reporting and never the 12 months of prevalence of fraud or sanction of mortgage, letter of endeavor, which can is likely to be of an ancient times.

Representational picture. Reuters.

The minister additionally knowledgeable the Home that gross advances by SCBs elevated from Rs 25.03 lakh crore as on 31 March, 2008, to Rs 68.75 lakh crore on 31 March, 2014.

As regards the pressured property within the banking system, Shukla mentioned the spurt was attributable to aggressive lending practices, wilful default, mortgage frauds, corruption in some instances and financial slowdown.

Replying to a different query, he mentioned as per RBI knowledge, there have been 139 debtors with mixture gross NPAs of greater than Rs 1,000 crore.

Shukla mentioned the RBI has apprised that it issued instructions to banks in June 2017, instructing them to file functions for initiation of company insolvency decision course of (CIRP) underneath the Insolvency and Chapter Code (IPC) in respect of 12 debtors.

The 12 debtors had cumulative fund-based and non-fund primarily based excellent quantity of Rs 1,97,769 crore as on 31 March, 2017.

“It subsequently issued additional instructions to banks advising them to finalise and implement decision plans in respect of 29 accounts by 13 December, 2017, failing which these too needed to be referred to CIRP underneath IBC,” Shukla mentioned.

The cumulative fund-based and non-fund primarily based excellent quantity of those accounts was Rs 1,35,846 crore, as on 30 June, 2017.

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