7th Conference of the Central Bureau of Investigation with Banks & Financial Institutions on “Combating Financial Crimes” was inaugurated today by the Chief Minister of Maharashtra Shri Devendra Fadnavis. This conference is being co-hosted by the Central Bureau of Investigation and the Indian Banking Association and is in the nature of a joint initiative to fight financial frauds.
Speaking on the occasion, Director, CBI Shri Anil Sinha said that the time has come to re-think and re-devise strategies so that on the one hand banks and financial institutions work fearlessely to power the economy towards growth, but at the same time, fix the fraudusters and public officials who collude with such cheats. The issue of delay in identifying and reporting frauds, allowing buyers to siphon off funds before investigations are taken up needs serious though. The monitoring of end use of funds, specially in large value accounts needs a re-look to check diversion of funds for non sanctioned purposes, he added.
During the last six years, gross Non Performing Assets(NPAs) in Public Sector Banks have gone up from Rs.44,957 crore in 2009 to Rs.3 lakhs crore in 2015. The level of gross NPAs as percentage of gross advances has also gone up from 2% in 2009 to 4.36% in 2015 and considering huge amounts tied up in accounts under restructuring, are not being considered in this. There is also a rise in quantum of high value frauds in Borrower accounts, especially those pertaining to periods from 2008 to 2012. There is also rising trend in case of bank frauds and financial crimes taken up by the CBI. CBI investigated 171 cases of bank frauds in the year 2015 involving funds of Rs. 20,646 crores. In addition, CBI is also investigating the Ponzi schemes involving funds of over Rs. One Lac Twenty Thousand Crore, Shri Sinha added.
CBI Director further said that the crisis in the banking and financial system runs deep and there is a growing sense of anguish among the public that while banks are strict on retail borrowers, the big borrowers and large scale fraudsters are able to not only evade the law but enjoy the fruits of crime. Something is indeed seriously wrong, he added.
The Director, CBI Shri Anil Sinha, Additional Director,CBI Shri Y.C.Modi and other Senior officers from CBI, CMDs, CVOs and other Senior officers of Public Sector Banks, Foreign Banks, Private Sector banks and other financial institutions are attending the conference.
Additional Director, CBI Shri Y.C. Modi proposed the Vote of Thanks