Loan Frauds surge in FY19
Loan Frauds surge in FY19 https://www.fundstiger.com/loan-frauds-surge-fy19/ Loan frauds as a percentage of total banking frauds jumped to 90% in fiscal 2019 from 55% in fiscal 2018 after regulatory standards were changed for banks reporting non-performing assets (NPAs). Loan frauds increased year-over-year to Rs 64,548 crore in 2019 from Rs 22,558 crore, even as frauds in other segments such as debit & credit cards, online banking and forex declined. State Bank of India reported fraud of ₹25,400 crore followed by Punjab National Bank of ₹10,800 crore and Bank of Baroda of ₹8,300 crore. Interestingly, the share in these frauds of public sector banks is as high as 90% in terms of the amount lost. And for high-value frauds that is, Rs 50 crore or more the share of PSBs rose higher to 91.6%. “This mainly reflects the lack of adequate internal processes, people and systems to tackle operational risks,” the RBI said in a recent report. It also said that the “spike in the numbe...