Lok Sabha Question No. 5616 (UNSTARRED), answered on 2017-04-07
Subject: Defrauded Bank Loan
Ministry: FINANCE
Asked by: RAJESH RANJAN  (PAPPU  YADAV)

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO 5616

## TO BE ANSWERED ON THE 7th APRIL, 2017/ CHAITRA 17, 1939 (SAKA)

## DEFRAUDED BANK LOAN

## 5616. SHRI RAJESH RANJAN:

Will the Minister of FINANCE be pleased to state:

- (a) the number of cases filed against individuals and oompanies who have defrauded banks have led t0 convictions the last three years and the current year; during
- (b) the details of the amount recovered from individuals and companies who defrauded the banks by taking unworthy loans the said period; during
- C the details of the tier 1 and tier 2 capital assets ratios of all the Public Sector Banks (PSBs) along with the cost incurred by the Government to recapitalise the PSBs to maintain their regulated tier 1 capital ratio of 6.5 per cent; and
- (d) the   steps   taken/being taken by the Government to  stop the   persistent occurrence of fraudulent loans disposals by PSBs?

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

(a) to (d): The details of number of cases filed against individuals and companies who have defrauded banks have led to convictions   during the last three years and current year (upto

The details of the amount recovered from individuals and companies who defrauded the banks the last three years and current year (upto Banks (PSBs) is as per Annexure-Il: during

The details of the tier 1 and tier 2 capital assets ratios of all the Public Sector Banks (PSBs) is as

All Public Sector Banks have a well-established vigilance mechanism headed by a Chief Vigilance Officer directly appointed by the Government of India. CVOs of the banks are expected to keep a close watch on the various aspects of functioning of the bank:

Reserve Bank of India (RBI) has issued Master Circular on Frauds- Classification and Reporting' on July 01 2015 contains instructions to banks which are related to disposall sale of loan frauds.

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| Data on Tier and Tier Il Capital Ratios of Public Sector Banks   | Data on Tier and Tier Il Capital Ratios of Public Sector Banks   | ANNEXURE-IlI   | ANNEXURE-IlI   |
|------------------------------------------------------------------|------------------------------------------------------------------|----------------|----------------|
| Sr. No.                                                          | (PSBs)as on 31.12.2016 Name of the Bank                          | Tier |    | Tier           |
|                                                                  | Allahabad Bank                                                   | 8.23           | 2.37           |
| 2                                                                | Andhra Bank                                                      | 8.37           |                |
| 3                                                                | Bank of Baroda                                                   | 11.39          | 3.06           |
| 4                                                                | Bank of India                                                    | 8.88           | 2.53           |
| 5                                                                | Bank of Maharashtra                                              | 8.82           | 3.06           |
| 6                                                                | Bharatiya Mahila Bank Ltd,                                       |                | 2.49           |
| 7                                                                | Canara Bank                                                      | 140.62         | 0.71           |
| 8                                                                | Central Bank of India                                            | 9.01           | 3.27           |
| 9                                                                | Corporation Bank                                                 | 7.79           | 2.12           |
| 10                                                               | Dena Bank                                                        | 8.25           | 2.48           |
| 11                                                               | IDBI Bank Limited                                                | 8.58           | 2.60           |
| 12                                                               | Indian Bank                                                      | 8.52           | 2.77           |
| 13                                                               | Indian Overseas Bank                                             | 12.24          | 1.65           |
| 14                                                               | Oriental Bank of Commerce                                        | 8,49 10.13     | 2.46           |
| 15                                                               | Punjab & Sind Bank                                               |                | 3.03           |
| 16                                                               | Punjab National Bank                                             | 9.32           | 2.18           |
| 17                                                               | Syndicate Bank                                                   | 8.84           | 2.78           |
| 18                                                               | UCO Bank                                                         | 9.29           | 3.03           |
| 19                                                               | Union Bank of India                                              | 8.20           | 2.06           |
| 20                                                               | United Bank of India                                             | 8.46           | 2.82           |
| 21                                                               | Bank Vijaya                                                      | 8.66           | 2.18           |
| 22                                                               | State Bank Of Bikaner & Jaipur                                   | 9.38           | 3.12           |
| 23                                                               | State Bank of Hyderabad                                          | 9.14           | 2.02           |
| 24                                                               |                                                                  | 8.54           | 2.24           |
|                                                                  | State Bank of India                                              | 10.65          | 3.07           |
| 25                                                               | State Bank Of Mysore                                             | 8.32           | 3.28           |
| 26                                                               | State Bank of Patiala                                            | 8.49           | 3.14           |
| 27                                                               | State Bank Of Travancore Source: RBI & Bhartiya Mahila Bank      | 8.84           | 2.08           |