Lok Sabha Question No. 2097 (UNSTARRED), answered on 2015-12-11
Subject: Losses incurred by PSBs
Ministry: FINANCE
Asked by: RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO . 2097

TO BE ANSWERED ON THE 11 th December,2015/Agrahayana 20,1937 (SAKA)

## LOSSES INCURRED BY PSBs

## QUESTION

## 2097. Shri Rabindra Kumar Jena:

Will the Minister of FINANCE be pleased to state:

- a) the details of Public Sector Banks (PSBs) earning profit/incurring losses during each of the last three years and the current year, bank and State-wise;
- b) whether loss incurred by PSBs is due to increasing the frauds in the said banks;
- c) if so, the details thereof along with the number of fraud cases detected and the action taken against the officials/banks during the said period, bank and State-wise; and
- d) the effective measures taken/being taken by the Government to stop frauds in banks in near future?

## ANSWER

## The Minister of State in the Ministry of Finance

## (SHRI JAYANT SINHA)

- (a): The details of Public Sector Banks (PSBs) earning profit / incurring losses during each of the last three years and the current year is appended in the Annex-I . However, the State-wise profit is with inter-se Transfer Pricing between branches and the Head Office of the Bank. The net declared profit/loss of the Bank is worked out after giving effect of Transfer Pricing and Statutory Provisions made at Head Office.
- (b): Bank losses are not directly attributable to the frauds. The decline in the profits/losses is mainly due to deterioration of the asset quality resulting in higher provisions besides increase in operational expenses.
- (c): Bank wise and state wise details of fraud cases of Rs. 1 Lakh & above detected during the Financial Year 2012-13, 2013-14, 2014-15 & current year upto September, 2015 and details of the employees involved in the fraud cases during said period are at Annex-II & Annex-III.
- (d): Each bank has been advised to frame and put in place a Fraud Risk Management Policy to prevent or eliminate perpetration of frauds in banks with the approval of their respective boards. Such Fraud Risk Management Policy encompasses the measures to strengthen the system & procedures, complete follow up of the laid down guidelines, observance of preventive vigilance on the part of field functionaries and effective control mechanism at Controlling Office/ Head Office.

Reserve Bank of India, in this regard, has also issued a Master Circular No.RBI.DBS.CFMC.BC.No.1/23.04.001/ 2015-16 dated July 01, 2015.

--------------

## PQ No.2097-Public Sector Bank-wise data

Source:Off-site returns as reported by banks, domestic operations

| Bank Name                      | Net Profit/Loss - Rs.crore   | Net Profit/Loss - Rs.crore   | Net Profit/Loss - Rs.crore   | Net Profit/Loss - Rs.crore   |
|--------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
|                                | Mar-13                       | Mar-14                       | Mar-15                       | Sep-15                       |
| Allahabad Bank                 | 1,157                        | 1,110                        | 604                          | 290                          |
| Andhra Bank                    | 1,289                        | 436                          | 638                          | 454                          |
| Bank of Baroda                 | 3,536                        | 3,387                        | 2,714                        | 1,105                        |
| Bank of India                  | 2,368                        | 2,061                        | 445                          | -1,502                       |
| Bank of Maharashtra            | 760                          | 386                          | 451                          | 131                          |
| Bharatiya Mahila Bank Ltd.     |                              | 12                           | 31                           | 15                           |
| Canara Bank                    | 2,737                        | 2,311                        | 2,584                        | 936                          |
| Central Bank of India          | 1,015                        | -1,263                       | 606                          | 316                          |
| Corporation Bank               | 1,435                        | 562                          | 584                          | 393                          |
| Dena Bank                      | 810                          | 552                          | 265                          | 54                           |
| IDBI Bank Limited              | 1,690                        | 594                          | 608                          | 50                           |
| Indian Bank                    | 1,485                        | 1,117                        | 984                          | 531                          |
| Indian Overseas Bank           | 442                          | 446                          | -414                         | -578                         |
| Oriental Bank of Commerce      | 1,328                        | 1,139                        | 497                          | 559                          |
| Punjab & Sind Bank             | 339                          | 301                          | 121                          | 168                          |
| Punjab National Bank           | 4,545                        | 3,080                        | 2,679                        | 1,179                        |
| Syndicate Bank                 | 1,919                        | 1,668                        | 1,493                        | 649                          |
| UCO Bank                       | 569                          | 1,417                        | 976                          | 431                          |
| Union Bank of India            | 2,070                        | 1,599                        | 1,594                        | 1,068                        |
| United Bank of India           | 392                          | -1,213                       | 256                          | 114                          |
| Vijaya Bank                    | 586                          | 416                          | 439                          | 258                          |
| State Bank of Bikaner & Jaipur | 730                          | 732                          | 777                          | 451                          |
| State Bank of Hyderabad        | 1,250                        | 1,020                        | 1,317                        | 627                          |
| State Bank of India            | 11,699                       | 8,605                        | 9,835                        | 5,482                        |
| State Bank of Mysore           | 416                          | 274                          | 409                          | 226                          |
| State Bank of Patiala          | 667                          | 448                          | 362                          | 223                          |
| State Bank of Travancore       | 615                          | 316                          | 4                            | 184                          |
| Public Sector Banks            | 45,850                       | 31,511                       | 30,860                       | 13,814                       |

<!-- image -->

| Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Staff is involved at the time of Reporting   | Staff is involved at the time of Reporting   |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|----------------------------------------------|----------------------------------------------|
| Name of State                                         | 2012-13                                               | 2012-13                                               | 2013-14                                               | 2013-14                                               | 2014-15                                               | 2014-15                                               | Apr 2015 - Sep 2015                                   | Apr 2015 - Sep 2015                                   | Apr 2012- Sep 2015                           | Apr 2012- Sep 2015                           |
| Name of State                                         | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                                  | Amount Rs in crore                           |
| Andaman & Nicobar Islands                             | 0                                                     | 0.00                                                  | 1                                                     | 0.98                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 0                                            | 0                                            |
| Andhra Pradesh                                        | 232                                                   | 863.33                                                | 188                                                   | 713.75                                                | 165                                                   | 887.26                                                | 111                                                   | 425.51                                                | 173                                          | 220.35                                       |
| Arunachal Pradesh                                     | 1                                                     | 0.05                                                  | 1                                                     | 0.05                                                  | 1                                                     | 0.09                                                  | 0                                                     | 0.00                                                  | 2                                            | 0.09                                         |
| Assam                                                 | 28                                                    | 3.98                                                  | 23                                                    | 14.80                                                 | 36                                                    | 5.69                                                  | 15                                                    | 2.42                                                  | 27                                           | 6.42                                         |
| Bihar                                                 | 81                                                    | 20.44                                                 | 70                                                    | 11.96                                                 | 106                                                   | 65.44                                                 | 76                                                    | 34.77                                                 | 62                                           | 37.14                                        |
| Chandigarh                                            | 18                                                    | 109.62                                                | 16                                                    | 820.69                                                | 30                                                    | 228.24                                                | 9                                                     | 166.32                                                | 6                                            | 307.15                                       |
| Chhattisgarh                                          | 14                                                    | 2.07                                                  | 32                                                    | 4.68                                                  | 36                                                    | 9.45                                                  | 17                                                    | 4.22                                                  | 13                                           | 2.64                                         |
| Dadra&Nagar Haveli                                    | 0                                                     | 0.00                                                  | 4                                                     | 0.21                                                  | 1                                                     | 0.07                                                  | 0                                                     | 0.00                                                  | 0                                            | 0                                            |
| Daman & Diu                                           | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 1                                                     | 0.09                                                  | 0                                                     | 0.00                                                  | 0                                            | 0                                            |
| Delhi                                                 | 247                                                   | 2233.11                                               | 304                                                   | 2215.28                                               | 335                                                   | 1178.67                                               | 156                                                   | 798.93                                                | 37                                           | 172.78                                       |
| Goa                                                   | 12                                                    | 11.17                                                 | 11                                                    | 4.88                                                  | 5                                                     | 1.51                                                  | 4                                                     | 0.17                                                  | 3                                            | 8.34                                         |
| Gujarat                                               | 91                                                    | 41.10                                                 | 106                                                   | 442.34                                                | 108                                                   | 1189.32                                               | 53                                                    | 804.79                                                | 39                                           | 8.15                                         |
| Haryana                                               | 85                                                    | 115.06                                                | 52                                                    | 74.85                                                 | 76                                                    | 85.97                                                 | 24                                                    | 30.34                                                 | 38                                           | 9.45                                         |
| Himachal Pradesh                                      | 11                                                    | 1.27                                                  | 10                                                    | 4.54                                                  | 10                                                    | 6.78                                                  | 12                                                    | 5.17                                                  | 7                                            | 0.95                                         |
| Jammu & Kashmir                                       | 11                                                    | 14.19                                                 | 8                                                     | 0.63                                                  | 14                                                    | 3.03                                                  | 3                                                     | 0.82                                                  | 6                                            | 1.53                                         |
| Jharkhand                                             | 51                                                    | 30.32                                                 | 107                                                   | 46.18                                                 | 107                                                   | 25.98                                                 | 26                                                    | 16.14                                                 | 22                                           | 5.29                                         |
| Karnataka                                             | 163                                                   | 209.70                                                | 112                                                   | 284.06                                                | 241                                                   | 131.47                                                | 127                                                   | 242.89                                                | 105                                          | 80.62                                        |
| Kerala                                                | 68                                                    | 10.32                                                 | 61                                                    | 33.55                                                 | 62                                                    | 71.01                                                 | 23                                                    | 7.43                                                  | 48                                           | 30.10                                        |
| Lakshadweep                                           | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 1                                                     | 0.97                                                  | 0                                                     | 0.00                                                  | 0                                            | 0                                            |
| Madhya Pradesh                                        | 78                                                    | 12.71                                                 | 86                                                    | 71.43                                                 | 71                                                    | 30.32                                                 | 49                                                    | 50.93                                                 | 63                                           | 13.88                                        |
| Maharashtra                                           | 378                                                   | 2861.73                                               | 390                                                   | 1136.32                                               | 407                                                   | 4887.42                                               | 190                                                   | 2467.81                                               | 113                                          | 108.42                                       |
| Manipur                                               | 0                                                     | 0.00                                                  | 1                                                     | 0.51                                                  | 3                                                     | 4.86                                                  | 1                                                     | 0.96                                                  | 3                                            | 5.38                                         |
| Meghalaya                                             | 0                                                     | 0.00                                                  | 2                                                     | 0.17                                                  | 7                                                     | 0.66                                                  | 4                                                     | 0.11                                                  | 5                                            | 0.41                                         |
| Mizoram                                               | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 2                                                     | 0.17                                                  | 0                                                     | 0.00                                                  | 1                                            | 0.14                                         |
| Nagaland                                              | 1                                                     | 0.10                                                  | 0                                                     | 0.00 63.35                                            | 3                                                     | 0.81                                                  | 2                                                     | 0.06                                                  | 4                                            | 0.29                                         |
| Orissa                                                | 78                                                    | 28.17                                                 | 136                                                   |                                                       | 88                                                    | 100.04                                                | 38                                                    | 9.60                                                  | 46                                           | 29.31                                        |
| Pondicherry                                           | 5                                                     | 0.16                                                  | 0                                                     | 0.00                                                  | 4                                                     | 0.34                                                  | 4                                                     | 0.34                                                  | 2                                            | 0.27                                         |
| Punjab                                                | 136                                                   | 149.73                                                | 122                                                   | 253.33                                                | 157                                                   | 168.80                                                | 64                                                    | 21.02                                                 | 38                                           | 42.98                                        |
| Rajasthan                                             | 64                                                    | 28.73                                                 | 57                                                    | 8.55                                                  | 73                                                    | 50.42                                                 | 34                                                    | 32.37                                                 | 37                                           | 25.75                                        |
| Sikkim                                                | 5                                                     | 0.56                                                  | 0                                                     | 0.00                                                  | 1                                                     | 0.18                                                  | 1                                                     | 0.03                                                  | 2                                            | 0.39                                         |
| Tamil Nadu                                            | 136                                                   | 268.98                                                | 147                                                   | 424.98                                                | 252                                                   | 1773.37                                               | 105                                                   | 782.58                                                | 141                                          | 106.96                                       |
| Tripura                                               | 2                                                     | 0.68                                                  | 0                                                     | 0.00                                                  | 0                                                     | 0.00                                                  | 1                                                     | 0.07 229.41                                           | 1                                            | 0.15                                         |
| Uttar Pradesh                                         | 309                                                   | 288.18                                                | 278                                                   | 124.07                                                | 344                                                   | 273.17                                                | 177                                                   |                                                       | 129                                          | 56.96                                        |

| Uttaranchal     |   23 |   10.65 |   36 |   40.91 |   45 |   19.72 |   11 |   2.64 |   15 |   6.69 |
|-----------------|------|---------|------|---------|------|---------|------|--------|------|--------|
| West Bengal     |  383 |  687.09 |  224 |  742.29 |  302 | 5493.19 |  137 | 788.91 |   91 | 190.49 |
| Overseas Branch |    8 |  184.09 |    5 |    2.8  |   19 |   64.18 |    4 |   0.68 |    9 |  42.32 |

## ANNEX-III

<!-- image -->

| Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Fraud cases of Rs 1 lakh and above reported by PSBs   | Staff involved at the time of Reporting   | Staff involved at the time of Reporting   |
|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------|-------------------------------------------|
| Bank Name                                             | 2012-13                                               | 2012-13                                               | 2013-14                                               | 2013-14                                               | 2014-15                                               | 2014-15                                               | Apr 2015 - Sep 2015                                   | Apr 2015 - Sep 2015                                   | Apr 2012- Sep 2015                        | Apr 2012- Sep 2015                        |
| Bank Name                                             | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                                           | Amount Rs in crore                                    | No of cases                               | Amount Rs in crore                        |
| Allahabad Bank                                        | 125                                                   | 395.64                                                | 95                                                    | 618.06                                                | 47                                                    | 75.98                                                 | 9                                                     | 103.11                                                | 34                                        | 43.54                                     |
| Andhra Bank                                           | 72                                                    | 123.55                                                | 38                                                    | 214.30                                                | 52                                                    | 511.41                                                | 22                                                    | 66.07                                                 | 35                                        | 7.81                                      |
| Bank of Baroda                                        | 114                                                   | 464.50                                                | 204                                                   | 453.16                                                | 303                                                   | 1186.68                                               | 119                                                   | 107.17                                                | 83                                        | 128.15                                    |
| Bank of India                                         | 272                                                   | 522.63                                                | 100                                                   | 226.90                                                | 131                                                   | 92.44                                                 | 62                                                    | 27.99                                                 | 64                                        | 28.70                                     |
| Bank of Maharashtra                                   | 23                                                    | 38.79                                                 | 33                                                    | 21.54                                                 | 50                                                    | 239.06                                                | 23                                                    | 871.13                                                | 29                                        | 29.61                                     |
| Canara Bank                                           | 76                                                    | 583.36                                                | 81                                                    | 180.30                                                | 114                                                   | 177.29                                                | 49                                                    | 1130.14                                               | 38                                        | 33.77                                     |
| Central Bank of India                                 | 118                                                   | 136.85                                                | 156                                                   | 823.29                                                | 214                                                   | 2149.72                                               | 101                                                   | 131.63                                                | 94                                        | 25.07                                     |
| Corporation Bank                                      | 77                                                    | 142.69                                                | 77                                                    | 278.28                                                | 73                                                    | 1222.09                                               | 63                                                    | 362.37                                                | 27                                        | 179.69                                    |
| Dena Bank                                             | 26                                                    | 221.93                                                | 36                                                    | 162.81                                                | 41                                                    | 400.16                                                | 12                                                    | 22.75                                                 | 17                                        | 20.45                                     |
| IDBI Bank Limited                                     | 106                                                   | 85.33                                                 | 92                                                    | 625.54                                                | 56                                                    | 557.95                                                | 50                                                    | 98.34                                                 | 16                                        | 80.20                                     |
| Indian Bank                                           | 87                                                    | 269.78                                                | 54                                                    | 43.49                                                 | 95                                                    | 91.04                                                 | 47                                                    | 88.76                                                 | 60                                        | 36.50                                     |
| Indian Overseas Bank                                  | 108                                                   | 500.32                                                | 125                                                   | 484.73                                                | 138                                                   | 574.36                                                | 60                                                    | 480.01                                                | 65                                        | 306.19                                    |
| Oriental Bank of Commerce                             | 62                                                    | 634.87                                                | 92                                                    | 53.52                                                 | 127                                                   | 764.84                                                | 82                                                    | 699.60                                                | 16                                        | 13.87                                     |
| Punjab & Sind Bank                                    | 34                                                    | 104.56                                                | 29                                                    | 69.67                                                 | 30                                                    | 39.16                                                 | 7                                                     | 5.57                                                  | 13                                        | 56.43                                     |
| Punjab National Bank                                  | 234                                                   | 686.92                                                | 239                                                   | 558.38                                                | 180                                                   | 2309.73                                               | 80                                                    | 226.01                                                | 68                                        | 22.98                                     |
| State Bank of Bikaner & Jaipur                        | 45                                                    | 143.00                                                | 43                                                    | 148.93                                                | 41                                                    | 462.13                                                | 26                                                    | 93.69                                                 | 13                                        | 8.82                                      |
| State Bank of Hyderabad                               | 35                                                    | 434.38                                                | 27                                                    | 365.08                                                | 31                                                    | 68.65                                                 | 15                                                    | 78.50                                                 | 35                                        | 46.75                                     |
| State Bank of India                                   | 480                                                   | 547.56                                                | 549                                                   | 906.07                                                | 651                                                   | 1612.69                                               | 321                                                   | 1045.76                                               | 329                                       | 128.47                                    |
| State Bank of Mysore                                  | 11                                                    | 3.50                                                  | 20                                                    | 92.83                                                 | 97                                                    | 90.75                                                 | 55                                                    | 4.47                                                  | 15                                        | 6.11                                      |
| State Bank of                                         | 29                                                    | 212.93                                                | 40                                                    | 98.85                                                 | 39                                                    | 290.30                                                | 18                                                    | 4.67                                                  | 11                                        | 54.92                                     |

| Patiala                  |     |        |     |        |     |         |    |        |    |        |
|--------------------------|-----|--------|-----|--------|-----|---------|----|--------|----|--------|
| State Bank of Travancore |  26 |  55.8  |  33 | 116.48 |  34 |  236.23 | 11 | 135.85 | 28 |  14.07 |
| Syndicate Bank           | 135 | 218.19 | 102 | 132.72 | 208 |  793.1  | 97 | 169.73 | 82 |  41.7  |
| UCO Bank                 |  73 | 352.65 |  56 | 364.24 |  87 | 1410.98 | 22 | 201.54 | 27 | 129.56 |
| Union Bank of India      | 116 | 715.94 |  85 |  92.09 | 111 |  369.83 | 73 | 662.69 | 52 |  17.1  |
| United Bank of India     | 201 | 186.65 | 125 | 348.98 | 128 |  680.35 | 47 |  16.27 | 18 |   1.21 |
| Vijaya Bank              |  34 | 404.96 |  59 |  61.87 |  35 |  351.74 |  7 |  93.64 | 19 |  60.15 |