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About Rs.70,000 cr. hit due to banking frauds in last 3 years
Why in the news ?
- During the ongoing monsoon session, the Rajya Sabha informed that Indian banks reported a total loss of about Rs.70,000 crore due to frauds during the last three fiscals up to March 2018.
Details
- The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17 and 2017-18 was Rs.16,409 crore, Rs.16,652 crore and Rs.36,694 crore, respectively.
- The Minister informed the House that gross advances by SCBs increased from Rs.25.03 lakh crore on March 31, 2008, to Rs.68.75 lakh crore on March 31, 2014.
- On stressed assets, he said the spurt was due to aggressive lending practices , wilful default, loan frauds, corruption in some cases and economic slowdown.
- There were 139 borrowers with aggregate gross NPAs of more than Rs.1,000 crore.
- RBI had issued directions to banks in June 2017, instructing them to file applications for initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC) in respect of 12 borrowers.
- These borrowers had cumulative fund-based and non-fund based outstanding amount of Rs.1,97,769 crore as on March 31, 2017.
Source
The Hindu