All public sector banks (PSBs) have been posting aggregate operating profits since FY16; however, due to the provisions on account of non-performing assets (NPAs), some PSBs reported net losses. Notwithstanding the NPA provisions, during the first nine months of FY22, all PSBs have reported net profit, the Lok Sabha was informed.
PSBs scan older loans, may lead to more fraud discovery
Sources said banks are reviewing loan accounts, which have already been flagged for monitoring, and more large accounts are likely to be reported as fraud in the next couple of months. December 22, 2020 3:00:10 am
The total cases of frauds (involving Rs1 lakh and above) reported by banks and financial institutions shot up by 28 per cent by volume and 159 per cent by value during 2019-20 despite the Reserve Bank of India (RBI) tightening the supervision and vigilance.
Public sector banks (PSBs) are expected to report more fraud cases in loan accounts that have earlier been put under their early warning alert system. Sources said banks are reviewing loan accounts, which have already been flagged for monitoring, and more large accounts are likely to be reported as fraud in the next couple of months.