Impact of Frauds on the Indian Banking Sector
Ainsley Granville Andre Jorge Bernard1, Brahma Edwin Barreto2, Rodney D Silva3
1Ainsley Granville Andre Jorge Bernard, Assistant Professor, Department of Commerce & Management, Vidyarthi Vigyan Manthan, Shree Damodar College of Commerce and Economics, Margao Goa, India.
2Brahma Edwin Barreto, Associate Professor, Department of Commerce & Management, Vidyarthi Vigyan Manthan, Shree Damodar College of Commerce and Economics, Margao Goa, India.
3Rodney D Silva, Associate Professor, Department of Commerce & Management, Vidyarthi Vigyan Manthan, Shree Damodar College of Commerce and Economics, Margao Goa, India.
Manuscript received on 15 May 2019 | Revised Manuscript received on 22 May 2019 | Manuscript Published on 02 June 2019 | PP: 219-223 | Volume-8 Issue-7S2 May 2019 | Retrieval Number: G10370587S219/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Banks act as engines that steer the processes of money markets, the financial sector and economic growth. The Indian banking sector has expanded at a fast pace, especially as we stand today on the brink of the fourth industrial revolution. However, this has not come without its due share of complications. Along with the swiftly growing banking industry, frauds in Indian banks have seen an rising trend and there is an urgent need to revamp the banking sector in India, given the scams involving crores of rupees being unearthed in the recent past. The present study makes an attempt to review and analyse the trend of frauds plaguing the banking sector and its role in the continuous rise of Non- Performing Assets in the India. Further the study endeavours to throw light on the impact of rising bank frauds on profitability of the banking sector in India. The study concludes that the number of frauds plaguing the Indian banking sector is on a constant rise in recent years leading to a rise in NPAs and severely impacting profitability of the banking sector in India. Stringent action by authorities along with finding new means of fraud prevention and reduction is the only way forward for safeguarding the credibility of Indian banks and giving a face-lift to the banking sector of the country.
Keywords: Frauds, Non-Performing Assets, Profitability, Banking Sector.
Scope of the Article: Addressing & Location Management