Lok Sabha Question No. 257 (UNSTARRED), answered on 2017-02-03
Subject: Complaints against Banks Officials
Ministry: FINANCE
Asked by: RAJESH VERMA

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO 257

TO BE ANSWERED ON THE 3RD FEBRUARY, 2017/MAGHA 14, 1938 (SAKA)

## 257 . SHRI RAJESH VERMA:

Will the Minister of FINANCE be pleased to state:

- (a) the number of banks officials who have unfairly given loans to companies misusing their official
- post during the last five years, bank-wise;
- (b) the action taken the Government against such fraudulent bank officials bank and State Wise;
- (c) the loss incurred by the Government in giving loans to fraudulent companies and the details of such companies which have became Non performing Assets; and
- (d) the steps taken by the Government to stop such frauds in future?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SANTOSH KUMAR GANGWAR)

- the number of fraud cases where  staff is   involved in borrowal accounts reported by
- (a): The details given by Reserve Bank of India (RBI) regarding 01.04.2011 to 31.12.2016 are given in Annex-I.
- (b): Action against the officials involved, is taken by the bank concerned as per their internal rules & regulation. The state wisel bank wise, bank officials suspended in fraud under category of loan/borrowable accounts are given in Annex-II.

(c): RBI has informed that the extent of loss incurred by the banks under category borrowal account frauds for the financial year 2015-16 is Rs.15841 crores and that banks have reported

2256 fraud accounts during the financial year 2015-16.

(d): RBI has issued Master Direction on 'Frauds Classification and reporting' vide RBI. dated July 01, 2016 containing all the detailslaspects   relating to frauds. To compress the time taken in detection of fraud, a framework for handling loan frauds has been in place. Objective of this framework is to direct the focus of banks on the aspects relating to prevention, early detection, prompt reporting to the RBI and the investigative agencies (for instituting criminal proceedings against the fraudulent  borrowers) and  timely initiation of the staff  accountability  proceedings. The framework also seeks to stipulate time lines with the action incumbent on a bank. Further; the framework has also prohibited banks from extending bank finance to borrowers who have defaulted and also committed a fraud for five years from the date of full payment of the defrauded amount: On receipt of fraud reports from banks, various aspects related to the frauds are examined and concerned banks are advised to report the case to Central Bureau of Investigationl Policel Serious Fraud Investigation Office , examine staff   accountability, complete proceedings against the erring staff expeditiously, take steps to recover the amount involved in the fraud, claim insurance wherever applicable and streamline the system as also procedures so that frauds do not recur: put

## ANNEXURE REFERRED IN REPLY TO PART(A) OF UNSTARRED QUESITON NO. 257 DUE FOR

## Details of Number of fraud cases where staff is involved in borrowal accounts reported bY banks during the\_period Aprill 2011 to December 31 2016

| Bank Names                                 | No. of fraud cases   |
|--------------------------------------------|----------------------|
| Allahabad Bank                             | 14                   |
| Andhra Bank                                | 20                   |
| Axis Bank Ltd:                             | 25                   |
| Bandhan Bank Ltd.                          |                      |
| Bank of Baroda                             | 36                   |
| Bank of India                              | 28                   |
| Bank of Maharashtra                        | 16                   |
| Barclays Bank Plc                          | 1                    |
| Canara Bank                                | 29                   |
| Catholic Syrian Bank Ltd.                  |                      |
| Central Bank of India                      | 17                   |
| Citibank NA                                | 2                    |
| City Union Bank Ltd.                       |                      |
| Corporation Bank                           | 50                   |
| Dena Bank                                  | 8                    |
| Dhanlaxmi Bank Limited                     |                      |
| Equitas Small Finance Bank Limited         |                      |
| Federal Bank Ltd_                          |                      |
| HDFC Bank Ltd.                             | 45                   |
| ICICI Bank Ltd_                            |                      |
| IDBI Bank Limited                          | 13                   |
| IFCI LTD.                                  |                      |
| Indian Bank                                | 12                   |
| Indian Overseas Bank                       | 55                   |
| Induslnd Bank Ltd.                         | 2                    |
| ING Vysya Bank Ltd.                        |                      |
| Jammu & Kashmir Bank Ltd.                  | 5                    |
| Karnataka Bank Ltd_                        | 12                   |
| Karur Vysya Bank Ltd:                      | 9                    |
| Kotak Mahindra Bank Ltd.                   | 5                    |
| Lakshmi Vilas Bank Ltd.                    | 5                    |
| Oriental Bank of Commerce                  | 9                    |
| Punjab & Sind Bank Punjab National Bank    | 9 16                 |
| South Indian Bank Ltd.                     |                      |
| Standard Chartered Bank                    |                      |
| State Bank of Bikaner & Jaipur             |                      |
| State Bank of Hyderabad                    | 1                    |
| State Bank of India                        | 149                  |
| State Bank of Mysore State Bank of Patiala | 6                    |
| State Bank of Travancore                   | 12                   |
| Tamilnad Mercantile Bank Ltd.              |                      |
| Syndicate Bank                             | 40                   |
| UCO Bank                                   |                      |
| Union Bank of India United Bank of India   |                      |
| Vijaya Bank Yes Bank Ltd                   | 2                    |
| Grand Total                                | 865                  |

## ANNEXURE REFERRED IN REPLY TO PART(B) ANSWER ON 03.02.2017 IN LOK SABHA:

ANNEX-II OF UNSTARRED QUESITON NO. 257 DUE FOR

Details of Bank officials suspended in connection with Borrowal Account FraudsBankwise & Statewise\_reported by banks during the period April1, 2011 to December 31, 2016.

| BankwiselStatewsie   | No. of officials   |
|----------------------|--------------------|
| Allahabad Bank       | 65                 |
| Andhra Pradesh       | 1                  |
| Bihar                | 3                  |
| Delhi                | 3                  |
| Gujarat              | 6                  |
| Karnataka            | 3                  |
| Madhya Pradesh       | 3                  |
| Maharashtra          | 3                  |
| Orissa               | 1                  |
| Uttar Pradesh        | 11                 |
| Uttaranchal          | 1                  |
| West Bengal          | 30                 |
| Andhra Bank          | 36                 |
| Andhra Pradesh       | 20                 |
| Chandigarh           |                    |
| Haryana              | 1                  |
| Karnataka            | 3                  |
| Maharashtra          |                    |
| Rajasthan            |                    |
| West Bengal          |                    |
| Axis Bank Ltd_       | 11                 |
| Andhra Pradesh       | 1                  |
| Assam                |                    |
| Rerhataka            |                    |
| Maharashtra          |                    |
| Punjab               | 1                  |
| West Bengal          |                    |
| Bandhan Bank Ltd:    | 12                 |
| Assam                | ;                  |
| Delhi                |                    |
| Madhya Pradesh       |                    |
| Uttar Pradesh        | 6                  |
| West Bengal          | 2                  |
| Bank of Baroda       | 57                 |
| Andhra Pradesh       |                    |
| Assam                |                    |
| Bihar                |                    |
| Delhi                | 2                  |
| Gujarat              |                    |
| Madhya Pradesh       | ;                  |
| Maharashtra          |                    |

| Punjab                    | 13   |
|---------------------------|------|
| Tamil Nadu                | 3    |
| Uttar Pradesh             | 13   |
| Uttaranchal               | 2    |
| Bank of India             | 9    |
| Andhra Pradesh            |      |
| Gujarat                   |      |
| Kezakhand                 |      |
| Madhya Pradesh            |      |
| Maharashtra               | 2    |
| Bank of Maharashtra       | 13   |
| Delhi                     |      |
| Madhya Pradesh            | ;    |
| Maharashtra               |      |
| Rajasthan                 | 2    |
| Tamil Nadu                | 1    |
| Canara Bank               | 24   |
| Andhra Pradesh            | 2    |
| Assam                     | ;    |
| Goa                       |      |
| Gujarat                   |      |
| Haryana                   |      |
| Karnataka                 | 5    |
| Orissa                    |      |
| Rajasthan                 | 2    |
| Tamil Nadu                | 3    |
| Uttar Pradesh             |      |
| West Bengal               | 5    |
| Catholic Syrian Bank Ltd. | 19   |
| Chandigarh                | 2    |
| Maharashtra               |      |
| Orissa                    | 1    |
| Tamil Nadu                | 12   |
| West Bengal               | 3    |
| Central Bank of India     | 55   |
| Andhra Pradesh            |      |
| Bihar                     |      |
| Delhi                     |      |
| Gujarat                   |      |
| Jharkhand                 | 3    |
| Kerala                    |      |
| Madhya Pradesh            |      |
| Maharashtra               |      |
| Punjab                    | 2    |
| Sikkim                    |      |
| Tamil Nadu                |      |
| Uttar Pradesh             | 1    |

| West Bengal            | 7   |
|------------------------|-----|
| Citibank NA:           | 2   |
| Karnataka              |     |
| Maharashtra            |     |
| City Union Bank Ltd.   | ;   |
| Andhra Pradesh         |     |
| Tamil Nadu             | 2   |
| Corporation Bank       | 36  |
| Andhra Pradesh         |     |
| Assam                  |     |
| Bihar                  |     |
| Delhi                  |     |
| Karnataka              | 1   |
| Kerala                 | 2   |
| Maharashtra            |     |
| Orissa                 |     |
| Punjab                 |     |
| Tamil Nadu             |     |
| Uttar Pradesh          | 5   |
| West Bengal            |     |
| Dena Bank              | 31  |
| Andhra Pradesh         | ;   |
| Chhattisgarh           |     |
| Delhi                  |     |
| Gujarat                |     |
| Haryana                |     |
| Himachal Pradesh       | ;   |
| Karnataka              |     |
| Maharashtra            | 11  |
| Uttar Pradesh          | 2   |
| West Bengal            | 1   |
| Dhanlaxmi Bank Limited | 26  |
| Delhi                  | 19  |
| Kerala                 | 2   |
| Tamil Nadu             | 2   |
| Uttar Pradesh          | 3   |
| Federal Bank Ltd:      | 23  |
| Kerala                 |     |
| Maharashtra            |     |
| Rajasthan              |     |
| Tamil Nadu             |     |
| Uttar Pradesh          | 19  |
| HDFC Bank Ltd:         | 1   |
| Tamil Nadu             | 1   |
| ICICI Bank Ltd:        | 11  |
| Andhra Pradesh         | 1   |
| Maharashtra            | 10  |
| IDBI Bank Limited      | 28  |
| Andhra Pradesh         | 25  |

| Jharkhand                 |    |
|---------------------------|----|
| West Bengal               | 2  |
| IFCI LTD                  | 1  |
| Karnataka                 | 1  |
| Indian Bank               | 54 |
| Andhra Pradesh            | 10 |
| Bihar                     | 2  |
| Gujarat                   | 2  |
| Himachal Pradesh          |    |
| Karnataka                 |    |
| Madhya Pradesh            |    |
| Maharashtra               | ;  |
| Orissa                    | 3  |
| Tamil Nadu                | 29 |
| Uttar Pradesh             | 2  |
| West Bengal               | 2  |
| Indian Overseas Bank      | 97 |
| Andhra Pradesh            | 37 |
| Chandigarh                | 2  |
| Delhi                     | 1  |
| Karnataka                 | 14 |
| Kerala                    | 2  |
| Maharashtra               | 10 |
| Orissa                    | 3  |
| Punjab                    | 2  |
| Tamil Nadu                | 25 |
| West Bengal               | 1  |
|                           | 2  |
| Karnataka                 |    |
| Tamil Nadu                | 1  |
| Jammu & Kashmir Bank Ltd_ | 15 |
| Delhi                     | 5  |
| Jammu & Kashmir           | 10 |
| Karnataka Bank Ltd.       | 17 |
| Bihar                     | 2  |
| Goa                       |    |
| Karnataka                 | 6  |
| Tamil Nadu                | 8  |
| Karur Vysya Bank Ltd:     | 12 |
| Karnataka                 | 3  |
| Tamil Nadu                | 9  |
| Kotak Mahindra Bank Ltd.  | 1  |
| Punjab                    |    |
| Lakshmi Vilas Bank Ltd:   | 18 |
| Andhra Pradesh            | 1  |
| Delhi                     |    |
| Gujarat                   | 8  |
| Tamil Nadu                |    |

## Uttaranchal

| Oriental Bank of Commerce              | 42   |
|----------------------------------------|------|
| Andhra Pradesh                         | 3    |
| Bihar                                  | 5    |
| Chandigarh                             | 6    |
| Delhi                                  | 6    |
| Gujarat                                |      |
| Haryana                                |      |
| Maharashtra                            |      |
| Punjab                                 |      |
| Tamil Nadu                             |      |
| Uttar Pradesh                          | 8    |
| West Bengal                            | 1    |
| Punjab & Sind Bank                     | 15   |
| Chandigarh                             | 7    |
| Maharashtra                            | ;    |
| Punjab                                 |      |
| Uttar Pradesh                          |      |
| West Bengal                            |      |
| Punjab National Bank                   | 118  |
| Andhra Pradesh                         | 3    |
| Bihar                                  | 2    |
| Delhi                                  | 51   |
| Gujarat                                | 2    |
| Haryana                                |      |
| Himachal Pradesh                       |      |
| Jharkhand                              |      |
| Keraataka                              |      |
| Madhya Pradesh                         |      |
| Maharashtra                            | 18   |
| Punjab                                 | 8    |
| Rajasthan                              | 7    |
| Uttar Pradesh                          | 8    |
| Uttaranchal                            | 6    |
| West Bengal                            | 2    |
| RBL Bank Ltd:                          | 2    |
| Maharashtra                            | 2    |
| South Indian Bank Ltd.                 |      |
| Delhi                                  | 13   |
| Haryana                                | 1    |
| Kerala                                 | 3    |
| Punjab                                 |      |
| Tamil Nadu                             | 5    |
| Uttaranchal                            | 1    |
| Standard Chartered Bank                |      |
| Haryana                                | 1    |
| State Bank of Bikaner & Jaipur Gujarat | 15 3 |

| Haryana                   | 2   |
|---------------------------|-----|
| Maharashtra               |     |
| Rajasthan                 | 9   |
| State Bank of Hyderabad   | 13  |
| Andhra Pradesh            | 11  |
| Karnataka                 |     |
| West Bengal               | 1   |
| State Bank of India       | 132 |
| Andaman & Nicobar Islands | 1   |
| Andhra Pradesh            | 38  |
| Assam                     |     |
| Bihar                     |     |
| Chhattisgarh              |     |
| Gujarat                   | 6   |
| Jammu & Kashmir           | 1   |
| Karnataka                 |     |
| Kerala                    |     |
| Madhya Pradesh            | 8   |
| Maharashtra               | 3   |
| Manipur                   |     |
| Nagaland                  | 1   |
| Orissa                    | 15  |
| Pondicherry               |     |
| Punjab                    | 3   |
| Rajasthan                 | 3   |
| Tamil Nadu                | 15  |
| Tripura                   |     |
| Uttar Pradesh             | 9   |
| West Bengal               | 13  |
| State Bank of Mysore      | 73  |
| Karnataka                 | 72  |
| Maharashtra               | 1   |
| State Bank of Patiala     | 33  |
| Gujarat                   | 10  |
| Jammu & Kashmir           | 13  |
| Punjab                    | 6   |
| Uttar Pradesh             | 3   |
| State Bank of Travancore  | 28  |
| Andhra Pradesh            | 2   |
| Delhi                     | 5   |
| Kerala                    | 7   |
| Tamil Nadu                |     |
| Uttar Pradesh             | 6   |
| Syndicate Bank            | 103 |
| Andhra Pradesh            | 8   |
| Bihar                     | 1   |
| Karnataka                 | 6   |

| Kerala                        | 3   |
|-------------------------------|-----|
| Madhya Pradesh                |     |
| Maharashtra                   |     |
| Mizoram                       |     |
| Punjab                        |     |
| Rajasthan                     |     |
| Uttar Pradesh                 | 28  |
| Uttaranchal                   |     |
| West Bengal                   | 4   |
| Tamilnad Mercantile Bank Ltd_ | 16  |
| Andhra Pradesh                | ;   |
| Delhi                         |     |
| Maharashtra                   |     |
| Tamil Nadu                    | 6   |
| UCO Bank                      | 191 |
| Assam                         | 2   |
| Bihar                         |     |
| Chandigarh                    |     |
| Delhi                         |     |
| Gujarat                       | 1   |
| Jharkhand                     | 3   |
| Madhya Pradesh                | 12  |
| Maharashtra                   | 14  |
| Orissa                        | 1   |
| Punjab                        | 72  |
| Tamil Nadu                    | 74  |
| West Bengal                   | 7   |
| Union Bank of India           | 16  |
| Andhra Pradesh                |     |
| Assam                         | ;   |
| Gujarat                       |     |
| Karnataka                     | 1   |
| Maharashtra                   | 5   |
| Tamil Nadu                    |     |
| Uttar Pradesh                 |     |
| West Bengal                   | ;   |
| United Bank of India          | 151 |
| Assam                         | 2   |
| Bihar                         | 2   |
| Karnataka                     | 21  |
| Kerala                        | 1   |
| Orissa                        | 36  |
| West Bengal                   |     |
| Vijaya Bank                   | 18  |
| Andhra Pradesh                | 3   |
| Chandigarh                    | 2   |
| Delhi                         |     |
| Karnataka                     | 1   |

| Kerala        |    1 |
|---------------|------|
| Maharashtra   |    3 |
| Punjab        |    3 |
| Tamil Nadu    |    2 |
| Uttar Pradesh |    1 |
| Grand Total   | 1674 |