SBI corporate fraud worth Rs 26,757 crore in April-November this year

New delhi date. November 29, 2019, Friday

In the first seven months of the current financial year 2019-20, the rate of corporate fraud in the State Bank of India (SBI) has more than tripled compared to the total fraud in the previous year. In April-November this year, the SBI reported fraud worth Rs 26,757 crore. Last year, a total of Rs 10,725 crore was cheated.

In fact, SBI card company SBI Cards is coming soon IPO. Details of this have been disclosed in the documents which the company has submitted for this purpose.

In the financial year 2017-18, there was only Rs 146 crore fraud in SBI. In FY 2018-19, there were a total of 25 cases of fraud which have increased to 48 in 2019-20. This year, even the smallest fraud is worth Rs 100 crore.

The reason for the escalation of fraud is that the Reserve Bank of India (RBI) is steadily increasing pressure on banks to report the incidents of fraud promptly and actively. The central bank has also directed the banks to look at the NPAs worth more than Rs 50 crore as fraud.

According to RBI data, it currently takes 55 months to identify corporate fraud. According to sources, whatever fraud cases have surfaced today, the NPA has been there for a long time.

However the official process takes a lot of time. Forensic audits have been initiated in several cases. Until all the old cases are disposed of, bank fraud will continue to increase.

The highest amount of Rs 10,821 crore fraud was caught in Punjab National Bank after the SBI. Finance Minister Nirmala Sitharaman said on November 19 that from April to November this year, a total of Rs 95,760 crore was seized in Indian banks.

In response to a question in the Rajya Sabha, the finance minister said that comprehensive steps were being taken to prevent fraud. Banks have been directed to view all NPA accounts above Rs 50 crore as a possible fraud. It should initiate criminal proceedings and seek the help of runaway financial crime law.