Indian-banks suffered Rs. 70,000cr loss due to frauds in 3yrs
Indian banks reported a total loss of about Rs. 70,000cr due to frauds during the last three fiscals up to Mar'18. The extent of loss in fraud cases reported by scheduled commercial banks (SCBs) for 2015-16, 2016-17, and 2017-18 was Rs. 16,409cr, Rs. 16,652cr and Rs. 36,694cr, respectively, Minister of State for Finance, Shiv Pratap Shukla, said quoting RBI data in the Rajya Sabha.
Gross-advances by SCBs increased by Rs. 43.72-lakh-crore in 6 years
Shukla said that data of frauds is as per the year of reporting and not the year of occurrence of fraud or sanction of loan, letter of undertaking, which may be of an earlier period. The minister also said that gross advances by SCBs increased from Rs. 25.03 lakh crore as on March 31, 2008, to Rs. 68.75 lakh crore on March 31, 2014.
There were 139 borrowers with NPAs over Rs. 1000cr: Shukla
Regarding the stressed assets in the banking system, Shukla said the spike was due to aggressive lending practices, wilful default, loan frauds, corruption in some cases and economic slowdown. He also said there were 139 borrowers with aggregate gross NPAs of over Rs. 1,000cr.
RBI had issued directions to banks last year for IBC
Shukla said the RBI has apprised that it 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. The 12 borrowers had cumulative fund-based and non-fund based outstanding amount of Rs. 1,97,769 crore as on March 31, 2017.
RBI had subsequently issued directions for 29 other accounts
"RBI subsequently issued further directions to banks advising them to finalize and implement resolution plans in respect of 29 accounts by December 13, 2017, failing which these too had to be referred to CIRP under IBC," Shukla said. The cumulative fund-based and non-fund based outstanding amounts of these accounts were Rs. 1,35,846 crore, as on June 30, 2017.
