Mumbai, March 24, 2017: India’s largest lender, the State Bank of India on Friday said it would initiate the process for selling 10 percent of its shares in its life insurance arm through an initial public offering (IPO).
According to a regulatory filing, the executive committee of the SBI’s central board has accorded in-principle approval to “initiate process for offer for sale of 10 percent of shares through initial public offer”.
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The bank also said it would explore the possibility of diluting 8 percent of its stake in SBI Life Insurance through IPO offer, out of total 10 per cent offer for sale.
SBI owns 70.1 per cent of the life insurer while BNP Paribas Cardif owns 26 percent. (IANS)
Indian economic system has many loopholes and many citizens are aware of how to use them to their advantage
India has seen some of the biggest bank frauds in past few years which has damaged its economy
Money scams and bank frauds are becoming very common and it is now high-time that government do something about them
Every year India witness some of the biggest bank frauds which impact its Economy like a boulder. According to IIM-Bangalore, India lost Rs. 22,743 crores because of bank frauds between 2012 and 2016.
Likes of Vijay Mallya, Harshad Mehta and the recent addition, Nirav Modi have basically robbed Indian banks and Indian economy of several crores of rupees. Here is the list of biggest bank frauds in India which shook the economy and population in recent years.
S.K. Jain Fraud
In 2014, the chairman of the Syndicate Bank was suspended for increasing the credit limit of some companies for the bribe of Rs. 50 Lakhs. SK Jain was one of the youngest CMD of the Syndicate Bank, this money fraud by him was done just after a year of being appointed as the CMD of the bank. Syndicate Bank’s share prices suffered heavy losses after the fraud was revealed.
Harshad Mehta Scam
While talking about any money scam or bank scam, Harshad Mehta is the first name which comes to the mind of many. Harshad Mehta was a clever share broker who knew loopholes in Indian economy too well. The case dates back to the 90s in which this fraud worth INR 4000 crores came into the light. Stock Market crashed after this scam was revealed, in which fake BRs were used to get money out of various banks and manipulate the share price of companies.
Bipin Vohra Fraud
In 2014, CBI filed a cased against the Kolkata-based industrialist Bipin Vohra and his other colleagues for allegedly cheating Central Bank of India. Bipin Vohra obtained a loan of Rs 139.05 crore using fake documents. Not only that, but he also used the money for purposes which weren’t stated while applying for the loan. Bipin Vohra lost a lot of his acquisitions due to this bank fraud of his.
One of the most recent Indian offenders, the UB group and Kingfisher Airlines owner has a debt of over INR 9000 crores which he has to pay back to various banks. He fled to London to escape the payments and penalisation, even after coming back, he hasn’t paid back anything as of yet. He was declared offender by the Union Bank Of India after which SBI and PNB followed suit.
Nilesh Parekh Fraud
Nilesh Parekh committed a fraud of Rs. 2,223 crores by cheating 25 banks which were under the State Bank Of India. Parekh was the promoter of Kolkata-based, Shree Ganesh Jeweller, he committed the fraud by diverting the loan money and he also shelled companies in other countries like Hong Kong, UAE and Singapore.
Another famous bank scam was the fraud done by the employees of Jain Infraprojects in collaboration with the Deputy General Manager of the Central Bank Of India. This bank fraud was done by diverting the funds for the purposes that weren’t mentioned in papers. This bank scam resulted in a loss of INR 212.30 crores for the bank.
Nirav Modi’s Fraud
The latest addition to the list, this one if one of the biggest bank frauds in India. The diamond merchant Nirav Modi committed a fraud of INR 11,450 crores with the Punjab National Bank. Modi used old LoU (letter of undertaking) issued to him by PNB, which were recycled and illegally issued to borrow money from other banks. He is also accused of committing a money fraud of Rs. 3000 crores with 17 other banks.