In 2018-19, a complete of 9,092 instances had been reported amounting to Rs 26,720 crore, whereas in 2019-20, the variety of frauds rose to 11,074, involving a financial worth of Rs 21,170 crore, Minister of State for Finance Bhagwad Karad stated in a written reply to the Rajya Sabha.
In 2020-21, PSBs reported 4,680 fraud instances of Rs 7,306 crore, which declined to 2,369 instances comparable to Rs 3,204 crore in 2021-22, he added.
Karad stated a web-based searchable database of frauds reported by banks has been arrange within the type of the Central Fraud Registry.
It has enabled well timed identification, management and mitigation of fraud danger and likewise to hold out due diligence in the course of the credit score sanction course of, he stated.
Varied steps have been taken by the RBI in fraud detection, similar to issuing instructions to banks on immediate reporting of such instances, reporting poor third-party providers and implementation of safety and operational controls by banks.
The minister stated the federal government, in 2015, issued a framework for banks for well timed detection, reporting, and investigation regarding large-value financial institution frauds involving cash in extra of Rs 50 crore.
“Public Sector Banks (PSBs) have been suggested to strictly guarantee rotational switch of officers/staff,” Karad stated.
In a separate query on the profitability of PSBs, the minister stated their web revenue elevated to Rs 66,519 crore in 2021-22 towards Rs 31,820 crore in 2020-21.
The gross NPAs (non-performing property) of those banks fell to Rs 5,41,750 crore from Rs 6,16,616 crore in 2020-21, Karad stated.
“Revenue earned and retained by banks provides to their capital and permits them to help additional mortgage development whereas sustaining required capital adequacy ratios. As well as, banks elevate capital from the market to strengthen their capital base,” the minister stated in his reply.
Offering information, Karad stated capital raised by the PSBs from the market within the type of each fairness and bonds in FY22 stood at Rs 50,719 crore.
It stood at Rs 58,697 crore in 2020-21 and Rs 32,293 crore in 2019-20.