Punjab National Bank, United Bank of India top list of officials prosecuted

BENGALURU: In yet another indication of systemic glitches dogging banks in India, Punjab National Bank (PNBBSE 3.05 %), along with United Bank of IndiaBSE 4.81 % (UBI), has reported the highest number of officials prosecuted for corruption. Between 2015 and 2017, the Central Vigilance Commission (CVC) sanctioned the prosecution of 30 officials of 13 banks.

Of the 30 people prosecuted, five (16%) each were from PNB and UBI.

State Bank of India (SBI), with four of its officials being prosecuted, is in third place. Overall, year-wise data shows that 2015 had the most number of sanctions (11), followed by 2017 (10). In 2016, prosecution of nine officials was cleared. All the cases against these 30 officials were registered under the Prevention of Corruption Act, 1988.

This is apart from all officials of public sector banks (PSBs) involved in various frauds (not referred to CVC) – which stands at 5,000 for the same period – who have either been convicted, dismissed or awarded penalties.

Looking at the three banks in this category – PNB, UBI and SBI – the last bank had the most number of officials involved in fraud (1,538), followed by PNB (184) and UBI (141). There are 24 other banks which together accounted for 3,137 officials, with some banks reporting more cases than PNB.

While the RBI has been issuing various guidelines and circulars about prevention of corruption and reporting of fraud, experts say unless the top management is punished, the issue will continue to plague the banks.economictimes