GET Stock QuotesNews18 APP
News18 English
1-min read

PNB Lost Rs 2,800 Crore to Fraud Last Financial Year, Most Among Govt Banks

The finance ministry told parliament that state banks lost a total of Rs 19,533 crore to 2,718 cases of fraud in the fiscal year that ended on March 31, 2017.


Updated:March 9, 2018, 4:58 PM IST
PNB Lost Rs 2,800 Crore to Fraud Last Financial Year, Most Among Govt Banks
People stand in front of the logo of Punjab National Bank outside a branch of the bank in New Delhi (File photo: Reuters)
New Delhi: Punjab National Bank lost Rs 2,800 crore to various frauds last fiscal year, the government said on Friday, making it the biggest such loser among all state-owned banks even before it uncovered an alleged Rs 12,700 crore fraud this year.

The country's second-biggest state-owned bank in February accused two high-profile jewelers, Nirav Modi and his uncle Mehul Choksi, and their companies of colluding with rogue bank employees to secure credit from overseas lenders using fraudulent guarantees between 2010 and 2017.

This has been dubbed as the biggest bank fraud in India's history, but the finance ministry told parliament that even before the fraud came to light, state banks lost a total of Rs 19,533 crore to 2,718 cases of fraud in the year that ended on March 31, 2017.

Punjab National, better known as PNB, alone reported 158 cases of fraud in 2016/17, the ministry said. PNB did not immediately respond to a request for comment.

In monetary terms PNB was followed by Bank of India, which lost Rs 2,770 crore, and State Bank of India that lost Rs 2,420 crore, the ministry said.

The ministry did not specify the nature of the frauds but added that the central bank recently formed an expert committee to look into "factors leading to increasing incidence of frauds in banks and the measures needed to curb and prevent it".

The committee will also look into the role of auditors in checking frauds.

Reuters reported last month that India's state-run banks reported 8,670 "loan fraud" cases totalling Rs 61,260 crore over the last five financial years up to March 31, 2017.

Loan fraud typically refers to cases where the borrower intentionally tries to deceive the lending bank and does not repay the loan.

A parliamentary committee on finance said in a report on Friday that it was "extremely concerned about the recent fraud detected in Punjab National Bank, which clearly reflects that a small group of individuals can manipulate such a gigantic bank and compromise it despite such well laid out norms, guidelines, checks and balances."

Also Watch

Read full article
Most Active
Company Price Change %Gain
Sun Pharma 623.50 +3.80 +0.61
Axis Bank 627.30 +3.85 +0.62
ICICI Bank 340.00 +5.70 +1.71
ITC 313.75 +6.30 +2.05
SBI 302.10 +9.40 +3.21
Company Price Change %Gain
RITES 310.00 +25.15 +8.83
Sun Pharma 623.30 +3.70 +0.60
Axis Bank 627.10 +3.25 +0.52
SBI 302.00 +9.30 +3.18
Tata Steel 580.60 +12.50 +2.20
Top Gainers
Company Price Change %Gain
Grasim 1,045.85 +46.40 +4.64
Yes Bank 393.20 +14.75 +3.90
Lupin 881.25 +31.50 +3.71
SBI 302.10 +9.40 +3.21
Vedanta 215.20 +6.40 +3.07
Company Price Change %Gain
Yes Bank 392.95 +14.25 +3.76
SBI 302.00 +9.30 +3.18
Vedanta 215.00 +6.45 +3.09
HUL 1,780.80 +45.60 +2.63
Tata Motors 257.35 +6.20 +2.47
Top Losers
Company Price Change %Gain
GAIL 387.70 -6.10 -1.55
Hero Motocorp 3,242.30 -40.35 -1.23
Eicher Motors 28,476.15 -327.70 -1.14
ONGC 163.05 -1.40 -0.85
Maruti Suzuki 9,152.10 -48.45 -0.53
Company Price Change %Gain
Hero Motocorp 3,248.60 -37.50 -1.14
ONGC 163.10 -1.00 -0.61
Maruti Suzuki 9,148.30 -53.65 -0.58
Coal India 281.20 -1.25 -0.44
HDFC 1,883.60 -7.30 -0.39