New Delhi: India’s largest bank, the State Bank of India, is the worst hit by banking sector frauds among all the public sector banks as bad loans or the non-performing assets of public sector banks declined from a high of Rs 8.95 lakh crore in March 2018 to Rs 5.59 lakh crores in December 2021. Bad loans or non-performing assets of public sector banks as they are called in the industry rose from Rs 2.17 lakh crore in March 2014, before Prime Minister Narendra Modi took office in May that year, to an alarming Rs 8.95 lakh crore in March 2018, as the government started the process of transparent recognition of bad loans in the balance sheets of public sector banks.
However, in the last three years, the aggregate amount of bad loans of public sector banks declined from Rs 8.95 lakh crore to Rs 5.59 lakh crore in December last year, as per the latest data shared by the ministry of finance in the Lok Sabha today. Bhagwat Karat, the minister of state for finance, said it was due to and as a result of the Government's strategy of recognition, resolution, recapitalisation and reforms.
Karat said as per the Reserve Bank’s instructions, public sector banks have created an online searchable database of frauds reported by banks, in the form of Central Fraud registry for timely identification and control of fraud risk. Citing the latest data for the last three financial years, the minister informed the Lok Sabha that as per the date of occurrence of the fraud, state owned State Bank of India, reported maximum banking frauds between FY 2018-19 and FY 2020-21.
There are four banks that reported more than one thousand frauds in the last three financial years, these are State Bank of India, Central Bank of India, Punjab National Bank and Union Bank of India.
SBI worst hit by major frauds
The State Bank reported 14,431 frauds, followed by the Central Bank of India (2,299), Union Bank of India (1,184) and Punjab National Bank (1,040). Other public sector banks that are hit by major frauds are IDBI Bank (747 frauds), Indian Overseas Bank (552), Indian Bank (517), UCO Bank (487 frauds), Bank of Maharashtra (435 frauds), Bank of Baroda (378 frauds), Oriental Bank of Commerce (349 frauds).
While Syndicate Bank reported 278 frauds, Bank of India reported 274 frauds during this period, Canara Bank reported 259 frauds and Punjab and Sind Bank reported 211 bank frauds. Two other banks Corporation Bank (136) and United Bank of India (117) reported more than 100 frauds, other public sector banks reported less than 100 frauds during this period.
