Page 7 - Banking Finance April 2019

BANK UPDATE

SBI reports frauds of Rs. 7,951 crore IDBI Bank gets nod to

State Bank of India has said frauds amounting to Rs 7,951.29 crore were re- handle import, exports
ported during the first nine months of 2018-19. All
these accounts became NPAs much earlier and most with Iran
of the portfolio is already provided for with 100 per
cent provision, SBI said in a regulatory filing.
"Moreover, we provide additional provision on new
frauds in each quarter to cover the gap, if any," it
said. ln this connection, while all fraud related laid down guidelines are being
followed, resolution process for recovery through Debt Recovery Tribunal and
other mechanism is also under way, it added.

Banks file over 2,800 suits to recover Rs. 1 lakh crore
The IDBI Bank has received govern-
in a year ment nod to handle import and ex-
Banks have filed suits against over 2,800 loan defaulters for recovery of around port transactions with Iran, a move
Rs 1,09,000 crore during the 12-month pe- which would help in promoting two-
riod ended September 2018. way trade amid US sanctions on the
Persian Gulf nation, industry sources
With this, total suit-filed accounts of banks
said. US President Donald Trump had
have gone up to 21,163 for the recovery of
Rs 3,97,488 crore as of September 2018 as in May last year withdrawn from the
against 2,816 accounts to recover Rs 2015 nuclear accord with Iran, re-im-
2,88,023 crore as of September 2017, accord- posing economic sanctions against
the Persian Gulf nation. Some sanc-
ing to data available from Transunion Cibil, a
tions took effect from August 6, 2018
credit information company. However, this works out to just 38% of the total
non-performing assets (NPAs) in the banking system. Banks had filed 15,219 suits while those affecting the oil and
to recover Rs 2,18,220 crore as of September 2016 and 11,290 accounts for Rs banking sectors started from No-
1,62,425 crore as of September 2015. vember 4, 2018.
CIBIL publishes details of suit-filed accounts which owe more than Rs 1 crore to According to sources, IDBI Bank has
banks. The figure would increase sharply if defaults below Rs 1 crore are also been identified to route the pay-
ments. UCO Bank had in the previ-
taken into account. However, neither the RBI nor credit information compa-
ous round of sanctions handled rupee
nies disclose details of the full list of defaulters - including non-performing as-
sets which are yet to be taken to the courts by banks - which include the who's payments. India used to pay its third
who of the corporate sector. largest oil supplier in Euros using
European banking channels. But this
State Bank of India has filed suits against 3,498 borrower accounts to recover channel is also blocked from Novem-
Rs 79,923 crore as of September 2018. Punjab National Bank filed 1,762 suits ber last year. Iran is India's third-larg-
for the recovery of Rs 51,956 crore, Bank of India moved against 891 accounts
est oil supplier after Iraq and Saudi
to recover Rs 14,157 crore and Corporation Bank has suits against 744 borrow-
Arabia. It was India's second biggest
ers for recovery of Rs 19,859 crore, according to the Cibil data. Public sectors
supplier of crude oil after Saudi
banks, including SBI, have slapped suits against 16,824 borrower accounts for Arabia till 2010-11 but sanctions by
recovery of Rs 3,09,217 crore. the West over its suspected nuclear
programme relegated it to the sev-
enth spot in the subsequent years. In
2013-14 and 2014-15, India bought
11 million tonnes (MT) and 10.95 MT
of crude, respectively from Iran.

BANKING FINANCE | APRIL | 2019 | 7