SBI reports 1,329 fraud cases worth Rs 5,555 crore in Apr-Sep 2018

SBI reports 1,329 fraud cases worth Rs 5,555 crore in Apr-Sep 2018
Highlights

As many as 1,329 cases of fraud, involving an amount of Rs 5,55548 crore, came to light in countrys largest bank State Bank of India SBI in first six months of the current fiscal year, an RTI query has revealed

As many as 1,329 cases of fraud, involving an amount of Rs 5,555.48 crore, came to light in country's largest bank State Bank of India (SBI) in first six months of the current fiscal year, an RTI query has revealed.

In response to a query of RTI activist Chandrashekhar Gaud, SBI said that 669 cases of fraud amounting to Rs 723.06 crore were reported in the first quarter (April-June), while 660 cases, involving an amount of Rs 4,832.42 crore, came to light in the second quarter (July-September).

The analysis of these statistics shows that in the second quarter, the number of fraud cases reported in SBI reduced by just nine, while the amount involved rose by about 568.33 per cent over the first quarter.

Gaud had also sought the information about the financial loss to the bank due to banking fraud. SBI in its response, however, said this amount cannot be quantified.

In reply to a query about the money lost by bank's clients due to banking frauds in the given period, SBI said, "The information relating to the incidents of frauds with SBI customers and the amount lost by the SBI customers is not compiled in the ordinary course of business and hence, exempted from disclosure under Section 7 (9) of the RTI Act, 2005."

Meanwhile, coming to the rescue of cash-strapped NBFCs, State Bank of India on Tuesday decided to buy their assets to the tune of Rs 45,000 crore, a move that will provide liquidity support to non-banking financing companies facing headwinds after a series of loan defaults by IL&FS group firms.

The decision of SBI, Economic Affairs Secretary Subhash Chandra Garg said in a tweet, should alleviate liquidity concerns of non-banking financing companies (NBFCs) to a great extent.

NBFCs along with mutual funds have been facing a liquidity crunch following a series of loan repayment default since late September by IL&FS and its group companies.

"Bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year which is now being enhanced. As per the bank's internal assessment, there may be an opportunity to buy additional portfolio in the range of Rs 20,000 (crore) to Rs 30,000 crore," SBI said in a statement.

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