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Frauds at SBI trebled in first 7 months of FY20

The number of frauds at SBI went up by three times in the first seven months of financial year 2019-20, when compared to the whole of FY2018-19
New Delhi: The number of frauds at the State Bank of India (SBI), India’s largest lender, went up by three times in the first seven months of financial year 2019-20, when compared to the whole of FY2018-19. The news comes despite the fact that the Reserve Bank of India (RBI) pushed lenders to declare instances of fraud sooner and look at non-performing assets of over Rs 50 crore from the fraud angle.

Frauds declared in IPO doc of SBI Cards

The initial public offering (IPO) document of SBI Cards showed that the lender reported big corporate frauds worth Rs 26,757 crores to regulators between April and November this year, compared with Rs 10,725 crores in FY2018-19. In FY2017-18, the frauds reported by SBI stood at only Rs 146 crore. Instances of fraud rose to 48 in the ongoing financial year from 25 in FY2018-29 and eight in FY2017-18. SBI’s data include frauds valuing at least Rs 100 crore.

Other lenders too saw a surge in frauds

While responding to a question in the Rajya Sabha, Union Finance Minister Nirmala Sitharaman said on November 19 that the Indian banking system declared frauds worth Rs 95,760 crores during the period between April and November 2019. After SBI, Punjab National Bank (PNB) reported the highest frauds totalling Rs 10,821 crores. “Comprehensive measures have been taken to prevent frauds, including directions to banks to examine all NPA accounts above Rs 50 crore from the angle of possible fraud, initiation of criminal proceedings, enactment of Fugitive Economic Offenders Act 2018,” Sitharaman had said then.