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25,600 cases! Indian banks were defrauded of Rs 1.79 bn till December 2017

Advait Rao Palepu/ 15 Feb 18 | 05:57 AM

Insolvency and Bankruptcy Code, IBC, Indian banks, Lenders, Banking sector. Illustration: Ajay Mohanty

Public sector banks (PSBs) lost a total of Rs 227.43 billion due to banking fraud between 2012 and 2016, notes an IIM-Bangalore study. Ravi Shankar Prasad, electronics and information-technology minister recently told Parliament, quoting Reserve Bank of India (RBI) data, there had been over 25,600 cases of banking fraud worth Rs 1.79 billion reported up to December 21, 2017.

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Data released by the RBI last March revealed that during the first nine-months of 2016-17, 455 cases of fraudulent transactions of Rs 100,000 and above were detected at ICICI Bank, 429 at State Bank of India, 244 at Standard Chartered Bank and 237 at HDFC Bank.  Data shows 64 employees of State Bank of India, while 49 of HDFC Bank and 35 of Axis Bank were involved in facilitating these transactions. 

Between April and December 2016, a total of 3,870 fraudulent cases were reported involving Rs 177.50 billion, which were facilitated by 450 private and public sector employees.

2011 

CBI finds some executives of Bank of Maharashtra, Central Bank, Oriental Bank of Commerce and IDBI created 10,000 fictitious accounts and transferred 

Rs 1.5 billion worth of loans  

2014 

Mumbai police files nine FIRs against several PSB officials for fixed deposit fraud worth Rs 7 billion

Electrotherm India cheated Central Bank of India out of over Rs 4.36 billion

Bipin Vohra, a Kolkata-based industrialist, allegedly cheated Central Bank of India, receiving a loan of Rs 1.4 billion by using forged documents 

Bribe-for-loan scam implicating ex-chairman and MD of Syndicate Bank, S K Jain, involved Rs 80 billion of sanctioned loans 

2015 

An alleged fraud committed on Central Bank of India by employees of Jain Infraprojects to the tune of Rs 2.12 billion

Employees from various banks defrauded the system of Rs 60 billion in a foreign exchange scam, involving a dummy Hong Kong corporation

2016

386 accounts opened by four people with Syndicate Bank, defrauded the bank of Rs 10 billion, using fake cheques, letter of credits and LIC policies 

2017

CBI prepares charge sheet against ex-United Breweries chairman Vijay Mallya and ten others for non-repayment of Rs 9.5 billion worth of loans owed to IDBI 

CBI registers FIR against five PSBs and six charge sheets against Deccan Chronicle Holdings for causing wrongful loss of Rs 11.61 billion  

Nilesh Parekh, Kolkata business tycoon, was arrested by CBI, due to loss of Rs 22.23 billion caused to 20 banks 

CBI arrests promoters of Abhijeet Group and former DGM of Canara Bank, for causing a loss of Rs 2.9 billion to two PSBs  

CBI files case against a former zonal head of the Bank of Maharashtra and a director of a private logistics company at Surat in connection to an alleged scam worth Rs 8.36 billion 

2018 

Enforcement Directorate arrests former Andhra Bank director, in an alleged Rs 5 billion bank fraud case, involving a Gujarat-based pharmaceutical company

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