Bank fraud value sees decline over 3 financial years: Here’s a sector-wise breakdown – CNBC TV18
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However, private sector banks reported an increase in fraud cases compared to their public sector counterparts.
Private sector banks
Leading private banks, including HDFC Bank, ICICI Bank, and Axis Bank, saw a steady increase in fraud cases. HDFC Bank’s fraud cases surged from 582 in FY22 to 5,477 in FY24, with the amount involved reaching ₹624.41 crore.
Similarly, ICICI Bank recorded 6,588 cases in FY24, up from 1,336 in FY22, though the total amount dropped to ₹322.61 crore.
Below is a summary of the number of fraud cases for selected private sector banks:
| Bank Name | FY 2021-22 | FY 2022-23 | FY 2023-24 |
| HDFC Bank | 582 | 2,870 | 5,477 |
| ICICI Bank | 1,336 | 1,912 | 6,588 |
| Axis Bank | 817 | 1,988 | 4,521 |
| IndusInd Bank | 1,376 | 1,611 | 2,085 |
| Kotak Mahindra Bank | 923 | 706 | 874 |
(Source: Ministry of Finance Data)
Public sector banks
Public sector banks showed better control, with both the number of cases and fraud amounts declining overall. For instance, State Bank of India (SBI) recorded 2,478 cases in FY24, a notable rise from FY22 but with the amount reducing to ₹223.92 crore.
Similarly, Punjab National Bank (PNB), which reported ₹2,449.14 crore in frauds in FY22, saw a dramatic drop to ₹89.80 crore in FY24.
Other banks like Indian Bank and Canara Bank reported reductions in fraud amounts, reflecting improved monitoring and preventive measures.
Below is a summary of the number of fraud cases for selected public sector banks:
| Bank Name | FY 2021-22 | FY 2022-23 | FY 2023-24 |
| State Bank of India | 1,035 | 1,739 | 2,478 |
| Punjab National Bank | 116 | 100 | 364 |
| Bank of Baroda | 124 | 270 | 1,342 |
| Canara Bank | 83 | 83 | 26 |
| Union Bank of India | 126 | 269 | 170 |
(Source: Ministry of Finance Data)
Government measures to combat bank frauds
In response to the rising number of fraud cases, the Reserve Bank of India (RBI) issued revised Master Directions on Fraud Risk Management in July 2024.
Key measures include:
Strengthening governance: Enhancing the role of bank boards in overseeing fraud risk management.
Robust internal controls: Implementing stronger internal audit and control frameworks.
Early detection systems: Improving frameworks for early warning signals and red-flagging accounts to detect and prevent frauds promptly.
Data analytics units: Mandating the establishment of dedicated data analytics and market intelligence units in banks to identify potentially fraudulent activities early.
