76 banks report 5,076 cases of active banking frauds: MoS Finance says
New Delhi: A combined 5,076 cases of active banking frauds involving Rs1 lakh or more causing losses of Rs16,78,853 lakh were reported by 76 banks during 2016-17, Parliament was informed on Tuesday.
In a written reply to the Rajya Sabha, minister of state for finance Santosh Kumar Gangwar said the State Bank of India (SBI) reported 544 cases of such frauds that caused a loss of Rs1,91,295 lakh. The minister further said that for ICICI Bank, the number of cases is 688 causing loss of Rs 36,844 lakh.
To a separate query, Gangwar said public banks received 81,309 complaints about working style in 2016-17, of which 77,291 were disposed of. The SBI received maximum complaints (30,581), followed by Punjab National Bank (6,227), Canara Bank (5,248) and Bank of Baroda (5,043).
Gangwar, in a written reply said as many as 10 state-owned banks including Bank of India, IDBI Bank and Union Bank, have submitted their turnaround plans to the government, which is a pre-requisite for getting fund infusion
Allahabad Bank, Andhra Bank, Central Bank of India, Dena Bank, UCO Bank, United Bank of India and Bank of Maharashtra are the other public sector lenders who have submitted their plans.
Indian Overseas Bank is currently in the process of preparing its turnaround plan, he added.
“It has been decided that any future capital infusion in these banks shall be subject to achievement of select agreed upon milestones as per turnaround plan on quarterly basis,” the minister said.
A monitoring mechanism has been put in place, whereby quarterly performance of these banks would be monitored by SBI Capital Markets, who in turn would keep the Department of Financial Services informed about the same.
“Banks that will not be able to deliver on the agreed upon turnaround plan for a period of two years will be identified as banks eligible for alternative recourse,” Gangwar added.
During recapitalisation exercise undertaken last fiscal, the government had decided that 25% of the total capital requirement of banks (Rs8,586 crore) will be allocated after achievement of benchmarks set up for select parameters. There are 21 public sector banks.