JK Bank reports Rs 320.42 Crfraud in past three yrs: GoI in Parliament

Jammu: Over the past three years the premier-Jammu and Kashmir Bank has suffered financial frauds amounting to Rs 320.42 crore, with whopping 289 Crore only in 2022-23.
The data was shared by the Ministry of Finance in the Rajya Sabha on December 17.
Moreover the fraud cases involving the bank fluctuated in number, a sharp surge in monetary impact was noted in 2022-23.
The data showed that in 2021-22, the bank reported 11 fraud cases involving Rs 14.23 crore. The following year, 2022-23, saw a significant spike, with 13 fraud cases amounting to Rs 298.09 crore, the highest in the three years. However, the figures declined in 2023-24, with eight cases reported involving a relatively modest Rs 8.10 crore.
This trend underscores both volatility in fraudulent activity and the financial toll on the bank, particularly in 2022-23, when the amount involved in fraud surged dramatically despite a marginal increase in the number of cases.
As per data on the national level, fraud cases across private and public sector banks saw a declining trend in financial impact. The total amount of frauds involving Rs 1 lakh and above dropped from Rs 9,298 crore in 2021-22 to Rs 3,607 crore in 2022-23 and further to Rs 2,715 crore in 2023-24, as per Reserve Bank of India (RBI) data.
Among private sector banks, HDFC Bank, ICICI Bank, and Axis Bank reported the highest fraud amounts over the three years. HDFC Bank alone reported Rs 624.41 crore in fraud for 2023-24, followed by ICICI Bank with Rs 322.61 crore and Axis Bank with Rs 324.19 crore.
In the public sector, Punjab National Bank (PNB) and State Bank of India (SBI) were among the top banks reporting fraud. PNB’s fraud-related losses, however, showed a significant decline, falling from Rs 2,449.14 crore in 2021-22 to Rs 89.80 crore in 2023-24. Meanwhile, SBI reported frauds worth Rs 223.92 crore in 2023-24.
To curb such incidents, the government has implemented stringent measures under RBI’s revised Master Directions on Fraud Risk Management issued in July 2024. These measures include strengthening the role of bank boards in governance, improving internal audits and controls, enhancing early warning systems, and mandating dedicated analytics units to detect fraudulent activities early.
The government asserted that these efforts have contributed to the decline in fraud amounts, but challenges remain, as reflected in region-specific fluctuations like those observed in Jammu and Kashmir Bank.

Updated On 12/18/2024 12:40:28 AM