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PNB incurred losses of Rs 2,808 cr due to frauds in 2016-17: Govt

Press Trust of India  |  New Delhi 

State-owned (PNB) had witnessed losses to the tune of Rs 2,808 crore on account of frauds in 2016-17, almost a year before it unearthed the mega scam of Rs 12,646 crore allegedly perpetrated by billionaire diamond jewellers and Mehul Choksi, Parliament was informed today.

Enlisting the bank-wise details of cases of fraud reported by (PSBs), involving an amount of Rs 1 lakh and above for 2016-17, Jaitley in a reply to the Lok Sabha said that encountered 158 such cases that caused loss of Rs 2,808.27 crore to the

In 18 of these cases, employees from PNB were also involved in perpetrating the fraud.

Country's largest lender had reported to be hit by fraud of Rs 2,422 crore in 544 cases, out of which 83 were cases in which employees were also involved.

Collectively, all the 27 (PSBs) --when the five of and Bharatiya Mahila were not amalgamated with of India (SBI)-- had incurred losses of Rs 19,533 crore in 2016-17.

Among others, of India took a hit of Rs 2,774 crore (162 cases); of Baroda Rs 1,165 crore (224 cases); Rs 1,372 crore (95 cases); IDBI Rs 1,137 crore (107 cases); of India Rs 921 crore (111 cases): Rs 895 crore (60 cases) and of India Rs 868 crore (146 crore).

In 2015-16, the PSBs had reported a total fraud of Rs 16,910 crore (2,789 cases) and in 2014-15 they incurred losses of Rs 16,803 crore (3,113 cases) due to frauds.

PNB had reported fraudulent issuance of Letters of Undertaking/Foreign Letters of Credit for payments of import bills, amounting to Rs 12,645.97 crore to RBI through its Fraud Monitoring Reporting System.

Jaitley said the government has issued an advisory to PSBs to take immediate action as per extant legal/regulatory framework to ensure that such/similar fraudulent activity (as reported by PNB) is not prevalent in the

"Government has further advised PSBs to collectively prepare a report for effective management of operational risks, including technology risk, so as to safeguard against occurrence of frauds," he said.

In response to a separate query on steps taken by government and RBI to recover money, Shiv said, "With regard to effect of the fraud on PNB and other banks, RBI has stated that it does not have specific information. PNB has stated that it has adequate assets/capital to meet any liability which may crystallise on the "

He said the (CBI) has registered two cases relating to the matter and as of March 3, 2018, had arrested 18 persons.

As per inputs, eight public servants belonging to PNB had been arrested as on March 6, ranging from the rank of

"The matter is under investigation. A total of 21 PNB employees have been suspended," he said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 20:40 IST