RBI: PSBs record frauds worth Rs19,964cr in Q1FY21; PNB, Central Bank, Indian Bank stocks in huge sell-offs

Frauds were reported in a total 2,867 cases with largest lender SBI witnessing the most cases in number terms.

Sep 21, 2020 02:09 IST India Infoline News Service

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In a reply to an RTI, the Reserve Bank of India (RBI) stated that public sector banks (PSBs) have recorded frauds worth Rs19,964cr for the quarter ending June 2020 (Q1FY21). Frauds were reported in a total 2,867 cases with largest lender SBI witnessing the most cases in number terms.

On NSE, the Nifty PSU Bank were among major laggards. The index was trading at 1,329.15 down whopping 4.14%. The underperformers list was led by PNB (Rs30.75 per piece), followed by Central Bank of India (Rs15 per piece), Indian Bank (Rs57.55 per piece) and Bank of India (Rs42 per piece) plummeting by near 5% each.

Other state-owned stocks like Indian Overseas Bank (Rs9.55 per piece), Bank of Baroda (Rs43 per piece), UCO Bank (Rs12.50 per piece), SBI (Rs184.25 per piece) and Bank of Maharashtra (Rs11.70 per piece) trading below 4-4.5%.

Stocks like Union Bank of India, J&K Bank and Canara Bank also plunged by nearly 3% each.

According to a PTI report, SBI saw the highest number of fraud cases; however, Bank of India was the worst hit in terms of value, as per a reply from the Reserve Bank on frauds reported by these lenders to RTI activist Chandra Shekhar Gaur.

From the total 12 PSBs, SBI reportedly witnessed maximum 2,050 fraud cases involving Rs2,325.88cr during April-June 2020.

Meanwhile, in terms of valuation, Bank of India saw frauds worth Rs5,124.87cr in 47 cases, reportedly followed by Canara Bank with Rs3,885.26cr in 33 cases, Bank of Baroda Rs2,842.94cr in 60 cases, Indian Bank Rs1,469.79cr in 45 cases, Indian Overseas Bank Rs1,207.65cr in 37 cases and Bank of Maharashtra which saw frauds worth Rs 1,140.37cr in 9 cases.

Unlike the above-mentioned lenders, state-owned PNB which is the second-largest PSB recorded fraud of merely Rs270.65cr despite the number of cases standing at 240. 

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