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Sep 14, 2018, 12:44
Banking frauds which shocked the financial world
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The banking sector in India is already in trouble and is being affected due to the increase in number of bad loans and the bank frauds which come in light. According to RBI, the total amount of loan fraud equals to Rs.1 Lakh and above have increased 14 times in the past 10 years. The total loans frauds amounted to Rs.22469.6 Cr in the FY2018 as per the latest RBI data published when requested by an economist under the RTI act. The data shook the entire country that there were 11183 recorded cases of loans fraud in the period April 2013-March 2018. The number of loan fraud cases in the Modi government is already close to the number of UPA-2 government of the reign they were in for 4 years but the amount involved has spiralled up to Rs.55000 Cr.

 

The Public Sector Banks (PSBs) account for almost 88 percent of the total loan amount frauds. Currently there are 19 nationalized banks and therefore most of them are in huge debt due to the Non-Performing Assets (NPAs). The data below shows the exact comparison between the PSBs and Private Banks loans frauds from the period FY2009 to FY2018.

 

 

Biggest and most notable loan frauds in the country in the past financial year (FY18):

 

Kanishk Gold Pvt Ltd for loan fraud amounting Rs.824.15 Cr

In a consortium of 14 public and private sector banks defaulted on a loan of Rs.824.15 Cr which after adding the interest due would amount to Rs.1000 Cr wherein SBI was one of the lead bank in the consortium and declared the account fraudulent in November 2017. The company used to take loans or credit on the basis of the Metal Gold Loans (MGL) from the banks and since the company couldn’t cope up with the losses in the business and therefore shut down their business overnight.

 

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