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About 84,545 bank fraud cases reported during 2019-20: RBI in RTI reply

  
  Analysis
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Around 84,545 fraud cases – involving about Rs 1.85 lakh crore – were reported by scheduled commercial banks and select FIs during 2019-20, an RTI activist said, citing information received from the Reserve Bank of India.

RTI (Right to Information) activist Abhay Kolarkar said that he had sought various banking related queries under the jurisdiction of the RBI in June 2020, and the replies to the same he received a few days back.

Kolarkar in his RTI query sought to know how many fraud cases have taken place during April 1, 2019 to March 31, 2020 and the amount involved in it.

The RBI stated that the total number of frauds reported by Scheduled commercial banks and select FIs during Financial Year 2019-20 is 84,545 and the amount involved therein is Rs 1,85,772.42 crore.

To the query about how many bank employees are involved in fraud cases and how much amount is involved, the RBI replied that the information on the question is not available.

“However, it may be noted that total number of frauds reported to have been committed by staff, as reported by Scheduled commercial banks and Select FIs during FY 2019-20 is 2,668 and amount involved therein is Rs 1,783.22 cr,” the central bank said.

The RTI also sought to know how many consumer complaints received by the RBI’s 15 ombudsmen offices during April 1, 2019 to March 31, 2020.

During July 1, 2019 to March 2020, about 2,14,480 complaints were received.

The highest number of complaints received by SBI- 63,259, HDFC bank- 18,764, ICICI bank- 14,582, Punjab National Bank- 12,469, Axis bank -12,214 followed by other banks.

The central bank in its reply said about 56,493 complaints received between April 1, 2019 to June 30, 2019.

The RTI query also sought information on number of branches exited by banks and those closed after merger during April 1, 2019 to March 31, 2020.

To which, the RBI provided information about the ‘number of merged branches with another branch of same bank’ during 2019-2020, which stood at 438 branches — SBI – 130, Central Bank of India – 62, Allahabad Bank – 59 and other banks.

The total number of branches closed in 2019-20 are 194, including 78 branches of SBI and 25 of Fino payments Bank limited.

Alcoa reports Q4 revenues at $2.44B vs $2.47B estimate

  
  Analysis
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Alcoa earnings

  • Revenues estimates ranged from $2.45B to $2.52B
  • EBITDA $346M vs $334.3m expected
  • Loss per share of 33-cents vs 21-cent estimate (31-cents ex-items)
  • Alcoa sees 2020 global aluminum demand +1.4-2.4%
  • Final 2019 aluminum demand -0.4% to -0.2% vs -0.4 to -0.6% AA estimate
  • Expects 2020 global aluminum surplus between 600K to 1m metric tons
  • Full year 2019 net loss of $1.125 billion or $6.07 per share
  • Full year adjusted loss of $184m
In October, the CEO said he expected a big rebound in aluminum demand this year. At the time he said the global economy “will come roaring back once this uncertainty is behind us.” I wouldn’t say 1.4-2.4% will cut it. At some point global growth will have to pickup or there will be more plant closures and factory layoffs.
Shares are down to $19.73 from $20.18 in the after-market.

It’s never too late to innovate

  
  Education
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Buffett’s having fun with his new partnership-purchase of Heinz. The structure of the deal: Both Berkshire and a Brazilian private equity firm bought the company’s common stock, and then Berkshire, as the financing partner, bought a preferred stock paying 9% interest with the ability to exchange it for even more common shares later. Early results of the takeover have been encouraging and Buffett seems tickled by the creativity of the transaction. “With the Heinz purchase, moreover, we created a partnership template that may be used by Berkshire in future acquisitions of size.” Including Heinz, Berkshire now owns 8 1/2 companies that would be included in the Fortune 500 if they were standalone entities, we are told. One could envision Berkshire doing a Heinz-like transaction once a year!

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