“Between April 2016 and March 2017, Indian lenders reported 12,533 cases of fraud, totalling Rs18,170 crore ($2.79 billion), according to a report by Institutional Investor Advisory Services, a proxy advisory firm.
“Such high quantum of frauds can be attributed to weak internal controls, which are capable of leaving an indelible dent on the balance sheet of the bank,” the report said. KC Chakrabarty, former deputy governor of the Reserve Bank of India, had earlier told Quartz that these frauds are a result of poor control and oversight by the management as well as the regulator.
Ironically, public sector banks (PSBs), which lost the most amount of money to frauds, spent significantly more on audits than their private sector peers. “But this has failed to improve audit quality. The focus now needs to shift to strengthening the audit quality by plugging process gaps and streamlining the checks and balances,” the report said.” (Quartz India, 2018, titled: “Indian banks reported at least one fraud every hour in 2017”)
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Source: Quartz India, titled: “Indian banks reported at least one fraud every hour in 2017” https://qz.com/1242509/indian-banks-reported-at-least-one-fraud-every-hour-in-financial-year-2017/