Impact of Fraud Incidents on Punjab National Bank: A Study of the Banking Sector in India

ABSTRACT

This paper investigates the occurrence of frauds across different banks and sectors, focusing on their impact on the performance of Punjab National Bank. Based on secondary data from credible sources, the study identifies a noticeable rise in fraud incidents over the study period, particularly in public sector banks. Punjab National Bank was significantly affected, particularly highlighted in 2018 when a major fraud was uncovered, adversely impacting the bank’s loan quality. Despite the robust regulatory framework and supervision in India’s banking sector since economic liberalization, challenges persist, including illegal practices and financial frauds. The study utilizes secondary data such as literature reviews and case studies to explore these issues comprehensively, addressing concerns like the increase in Non-Performing Assets (NPAs), especially in public sector banks. Additionally, the paper offers recommendations aimed at mitigating future fraud occurrences within the banking sector and provides detailed statistics on the types and frequency of frauds occurring in India’s banking industry.

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