Banks in India report loan fraud worth Rs 5 trillion
Published On: Monday, May 24, 2021 | By: Team KnowMyStock
Banks operating in India reported fraud of Rs 4.92 trillion as of March 31, 2021, which represents nearly 4.5% of the total bank credit, showed Reserve Bank of India (RBI) data, according to a reply to an RTI query. The data showed 90 banks and financial institutions reported a total of 45,613 cases of loan fraud till March 31, 2021. State Bank of India – the country’s largest lender – reported the highest amount of loans as fraud - Rs 78,072 crore as of March 31, 2021. SBI is followed by Punjab National Bank (Rs 39,733 crore), Bank of India (Rs 32,224 crore), and Union Bank of India (Rs 29,572 crore). The top five banks account for 42.1% or Rs 2,06,941 crore of the total frauds classified by the banks.
Among private sector banks, ICICI Bank led the amount involved in loan frauds (5.3%), followed by Yes Bank (4.02%) and Axis Bank (2.54%). These three private sector banks constituted 11.87% of the total amount involved in loan fraud. The largest private sector lender HDFC Bank's amount involved in the loan frauds was 0.55% of the total.
Data obtained by the same RTI application showed that 2,261 accounts have been identified by the banks as wilful defaulters as of December 31, 2020, with the total amount involved at Rs 1.72 trillion. Sequentially, the amount of wilful default is up 4.5% as compared to the end of September, i.e. from Rs 1.64 trillion.
A total of 147 new wilful defaulters were identified by lenders during the October – December quarter. These lenders owed Rs 5,785.93 crore to the banks.
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