Loan Frauds

RTI Reveals Loan Frauds

Prasenjit Bose

A RTI was filed by me to Reserve Bank of India to know the bank-group wise details of advances related frauds from 2008-09 to 2017-18. The main points which emerged from the data (as given by RBI mentioned in the photocopy above) are the following:

1. There were 9193 cases of Loans Frauds in the last 4 years (April 2014 to March 2018), involving an amount of Rs. 77521 crore. In the previous five years (April 2009 to March 2014) there were 8421 cases involving Rs. 21158 crore.

2. While the number of loan fraud cases in the 4 years of the Modi Govt. is already 700 more than the number under the UPA-II Govt., the amount involved has gone up by Rs. 56000 crore.

3. Instances of Loans frauds at the Public Sector Banks have totalled 7128 in the last 4 years, with an amount of Rs. 68350 crore involved. In the previous five years there were 8331 cases involving Rs. 19113 crore.

4. Loan Frauds at the Private Sector Banks total 1927 involving Rs.7774 crore in the last 4 years. In the previous 5 years there were 2005 cases involving Rs. 2670 crore.

5. Not only have the number of fraud cases increased under the present regime, the amount involved in loans frauds have grown more strikingly; it has in fact trebled. This points towards systemic corruption in sanctioning loans to large borrowers.

6. The PSBs account for 88% of the amount involved in Loan Frauds. Data from the Indian Banks' Association show that the 27 PSBs taken together incurred net losses worth Rs. 17992 crore in 2015-16 and Rs. 11388 crore in 2016-17. The amounts of loan frauds involving the PSBs stood at Rs. 15879 crore in 2015-16 and Rs. 17628 crore in 2016-17. Thus, loan frauds each year are almost equal to the aggregate annual losses being made by the PSBs.

Where are the investigating agencies? How many fraudsters have been arrested and prosecuted for their crimes? The Union Finance Ministry must be held accountable for this massive loot of money from the banks and undermining the public sector banking system.