According to data from OnlineRTI.com and RBI, the amount involved in bank fraud rose from USD 1.6 billion in the fiscal year 2013-14 to USD 3 billion in 2014 – 2015.
The fraud ranged from cheque alteration to fake loans, debit/credit card fraud to cyber fraud. The spike is mainly because of a multi-fold increase in cases of fraud recorded by banks in Maharashtra and West Bengal, both states accounting for more than 50% of the total loss through fraud.
While banks in Maharashtra saw a 150% increase in fraud, from USD 376 million in 2013 – 2014 to USD 940 million in 2014-15, banks in West Bengal notched a six-fold increase in fraud, from USD 118 million to USD 912 million.
Public-sector banks appear to have borne the brunt of the fraud-spike, with the Punjab National Bank, which lost USD 355 million, topping the list, followed by the Central Bank of India, where the lost amount stands at USD 330 million, the data further reveal.
Despite a market share of 30%, private banks collectively account for around 40% of losses from bank fraud. India has 20 private banks, 26 public-sector banks and 30 foreign banks. NPAs soared 23% from USD 38 billion in March 2014 to USD 48 billion in March 2015.
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