Now Vijaya Bank, IOB, BOI BOB And Others Trapped In Fraud

Mumbai EOW, CBI uncover Rs 1,000 crore banking fraud at Dena Bank, IOB, other PSBs-Business Standard-28th August 2014

The mastermind of the fixed-deposits scam is reported to be Mohammed Fashiuddin of the Showman Group

The Mumbai Economic Offences Wing on Thursday said it had uncovered a large scale banking racket involving multiple persons who conspired to perpetrate widespread fraud at Dena Bank and Oriental Bank of Commerce, as well as some other banks.

Read about Scam in Dena Bank And Oriental bank

 The quantum of the fraud, part of which is being investigated by the Central Bureau of Investigation, is likely to be close to Rs 1,000 crore, sources said.

The criminal syndicate allegedly also carried out large-scaled Fixed Deposit scams at other public sector banks, including UCO Bank, Syndicate Bank, Bank of Baroda, Vijaya Bank, and Dhanalakshmi Bank.

Read about Scam in Syndicate Bank

 The EOW has registered 10 FIRs against several individuals as well as officials of public sector banks. The mastermind of the scam is reported to be Mohammed Fashiuddin of the Showman Group. So far, four of the accused have been arrested. Searches and raids are ongoing at offices and homes of some of the accused.

Also Read Scam After Scam

 The role of officers at Bank of India, Indian Overseas Bank,, and Dena Bank is being investigated. Among the institutions who were victims of the fraud are the MMRDA and SIES Trust.

Read About Scam In Central bank

 The amount involved in case of Vijaya Bank is Rs 5 crore. The bank has completed its investigation in the matter and the report has been submitted to a committee of general managers. The committee will study the report and refer it to the Vigilance Department for further action, if required, the sources said. However, no official of the bank has been found guilty as yet, they added.

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CBI Registers Case Against Firm For Over Rs. 139 Crore Bank Fraud

CBI has registered a case against Bengal India Global Infrastructure for allegedly cheating Central Bank of India of over Rs. 139 crore by availing loans on forged documents.

The company allegedly entered into a criminal conspiracy with the directors of Bholanath Ingots, Gouri Iron Steel Pvt Limited, Subhlabh Steels Pvt Limited and B K Newatia, chartered accountant Partner of Jaykishan chartered accountants, CBI spokesperson said here today.

"It is alleged that they availed credit facilities from Central Bank of India on the basis of false and forged documents and diverted the funds for the purpose other than for which the same was sanctioned and thereby cheated and defrauded the Central Bank of India to the tune of 139.05 crore," she said.
The agency today carried out searches at 15 places in Kolkata and Durgapur in West Bengal in connection with the case, the spokesperson said.

Read About Latest Scam In UCO Bank

Read About T N Bhasin IBA Chairman

Read About Irrgularities In Corporation bank

Fixed deposit scam of Rs 1,000 cr: Mumbai EOW files FIRs-Hindu Business Line

Mumbai, Aug 28:  

The Economic Offences Wing (EOW) of the Mumbai Police on Thursday filed 10 first information reports (FIRs) against several officials of state-run banks and individuals for an alleged fixed deposit fraud of more than Rs. 1,000 crore.

According to reports, the fixed deposit scam was undertaken by certain individuals in collusion with bank officials at several public sector banks including Dena Bank, UCO Bank, Indian Overseas Bank, Syndicate Bank, Bank of Baroda, Vijaya Bank, Oriental Bank of Commerce and Dhanlaxmi Bank.

The perpetrators of the crime misused the cash credit facilities available against fixed deposits of entities like South Indian Education Society, Mumbai Metropolitan Regional Development Authority and Jawaharlal Nehru Port Trust to raise loans, reports said further.

So far the agency has arrested six people involved in the fraud including the alleged mastermind of the scam Mohammed Fasihuddin, promoter of the Showman Group.

The agency is also investigating the role of bank officials involved in the fraud.

Also read following link

Irregularities In Andhra Bank

Forensic Audit of United Bank

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Job Opportunities In Banking

5-7 lakh banking jobs in the offing

BEENA PARMAR

With half the workforce in public sector banks set to retire, lenders gear up for challenges

MUMBAI, JUNE 30:  

With close to 50 per cent of the workforce in public sector banks set to retire in the next few years, the banking industry will soon be among the top employers offering five-seven lakh jobs.

India’s largest lender, State Bank of India, will recruit over 7,200 employees in this fiscal. “We intend to hire about 1,837 probationary officers and 5,400 assistant officers in FY15,” said JN Misra, corporate development officer at SBI.

About 40,000 staff will be retiring in the next four years and the bank expects to recruit about 35,000- 40,000 employees during the period. Similarly, in Bank of Baroda, 16 of the 32 top management personnel will retire by March FY15. The third largest public sector bank will hire 7,500 probationary officers and clerks this financial year, with about 2,500 employees due to retire.

“We have a good succession plan in place and have completed our promotion exercise in the first month. The people who will be replacing the seniors were groomed and trained as well. While the challenges of senior management retiring will remain, we are better prepared this year,” said SS Mundra, Chairman and Managing Director of the bank.

The banking industry needs to match the capabilities to bridge the talent gap in public and private sector banks, according to Anil Khandelwal, former CMD, Bank of Baroda. According to him, regulators always talk of financial assets but not about those who create those assets. He added that PSB boards today spend less than one per cent of human resources to train and make their employees competitive.

“Barring three banks, no PSBs have set up a committee on HR within the bank. Succession in key positions is not being discussed. The rigour that private banks display in developing key leadership positions is not visible in PSBs,” said Khandelwal, who was chairman of the committee to look into the HR issues of public sector banks.

About 75 per cent of the general manager level posts will be vacant by 2020, according to Akash Lal, Partner, McKinsey and Co.

Aditya Mishra, President - Staffing, Randstad India, said: “Apart from core banking jobs, there will be an increase in backend jobs, including those in processing and outsourcing to third parties.”

Link Hindu Business Line

Slippage of farm loans into NPAs high, say bankers

Naidu appealed to the bankers to reschedule the farm loans even though the RBI had not yet accepted its request-    1st July Business Standard

Andhra Pradesh chief minister N Chandrababu Naidu on Monday informed the State-level Bankers' Committee (SLBC) that his government would come up with a concrete plan for the loan waiver scheme soon.

Naidu said he spoke with Prime Minister Narendra Modi requesting the Centre's helping hand with regard to the debt waiver scheme in the state. The chief minister said he would get back to the Prime Minister with a concrete plan in this regard.

Naidu appealed to the bankers to reschedule the farm loans even though the Reserve Bank of India had not yet accepted its request.

Meanwhile, SLBC president and chairman and managing director of Andhra Bank C V R Rajendran said the crop loan disbursements during the current season had almost come to a halt as banks were unable to recycle the funds owing to non repayment of loans and mounting overdues.

The slippages of April loans into NPAs are on a very high side resulting in higher provisioning ultimately affecting the credit rating of the banks, according to him.

"The need of the hour is to bring clarity on the proposed debt waiver with due publicity...I also request the government to put in place an effective and undisputable recovery mechanism, which can tackle the issue effectively," he said.

Link Business Standard