Money & Banking

SBI records 3-fold jump in frauds

Our Bureau Mumbai | Updated on June 20, 2020 Published on June 20, 2020

The State Bank of India (SBI) reported 3.60 times jump in total frauds at ₹44,622 crore in FY20 against ₹12,387 crore in the preceding financial year, according to its annual report. The number of cases in which the aforementioned frauds occurred rose 2.66 times to 6,964 cases against 2,616 case in the preceding year, it added.

As per the annual report of India’s largest bank, out of the total frauds of ₹44,622.45 crore reported during the year, an amount of ₹44,419.46 crore in 651 cases (previous year ₹12,310.90 crore in 581 cases) represents advances declared as frauds.

“Full provision has been made for the outstanding balance as on 31st March, 2020 in respect of frauds reported during the year except advance account declared as fraud during the year where Bank has chosen to make provision over four quarters. The unamortised provision amount of ₹5,230.37 crore as on 31st March 2020 has been debited to ‘Other Reserves’ by credit to ‘Provisions’ in terms of RBI circular DBR…dated 18th April 2016,” the report said.

Committee to monitor frauds reconstituted

The bank has constituted a Special Committee of the Board for monitoring of Large Value Frauds (SCBMF) in 2004.

The major functions of the Committee are to monitor and review all large value frauds with a view to identifying systemic lacunae, if any, reasons for delay in detection and reporting, if any, monitoring progress of CBI/police investigation, recovery position. It also has to ensure that staff accountability exercise is completed quickly, reviewing the efficacy of remedial action taken to prevent recurrence of frauds and putting in place suitable preventive measures.

It was last reconstituted in February 2020, and has seven members and is chaired by a Non-Executive Director. The Committee met six times during 2019-20.

Published on June 20, 2020
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