India's Banking Scandal: ₹1.1 Lakh Crore Fraud, Less Than 5% Recovered - A Silent Hemorrhage On Economy

While names like Vijay Mallya, Nirav Modi, and Mehul Choksi continue to dominate headlines, newly unearthed data reveals a far more deep-rooted and alarming crisis within India’s banking system, one not limited to a few infamous fraudsters, but driven by a sprawling nexus of economic crimes and institutional failure. Between FY 2021–22 and December 2024, Indian banks registered a jaw-dropping 693,124 cases of financial wrongdoing. 

The total amount of money involved in fraud cases across all banks and financial institutions from FY 2021-22 to FY 2024-25 (until December '24) was Rs 110,923.75 Crore. Out of this substantial sum, Shockingly, only Rs 5,048.28 Crore have  been recovered, leading to unrecovered losses amounting to Rs 105,875.47 crore, barely a dent in the damage. Behind these figures lies a murky ecosystem  fueled by cybercriminals, shell companies, fraudulent borrowers, insider collusion, and regulatory negligence creating a silent financial hemorrhage. The magnitude and persistence of these crimes point to a systemic rot, where accountability is scarce, and exploitation is rampant.     

The information was obtained by Sanjay Thul, a retired Assistant Commissioner from the Central GST Department and current President of the Association of Social and RTI Activists (ASRA). Known for championing financial transparency, Thul said the RBI’s failure to track convictions raised “serious concerns about accountability and enforcement.”

“The numbers point not just to fraud, but to a failure of institutional oversight,” he said. 

Sourced under RBI reference numbers RBIND/R/E/24/02990 and RBIND/R/E/25/01413, the information includes detailed year-wise and bank-wise data, covering five financial years from FY 2020–21 to FY 2024–25 (up to December 2024). According to Sanjay Thul, the data reflects a consistent rise in fraud volumes across multiple banks, paired with alarmingly low recovery rates. More critically, there is a complete absence of data on legal action taken against the perpetrators. The RBI, in its annexure, stated that “information sought is not available” regarding the number of fraudsters convicted over the past three financial years—raising fresh concerns over financial accountability and the lack of institutional deterrence. 

The data reveals that Axis Bank, a prominent private sector lender, also experienced a considerable number of fraud incidents and associated losses. From FY 2021-22 to December 2024, Axis Bank reported a total of 65,932 fraud cases.The cumulative amount involved in these cases stands at Rs 2,434.14 crore. However, recovery efforts have resulted in the retrieval of only Rs 97.75 crore, This leaves a substantial difference of Rs 2,336.39  Crores in unrecovered fraud losses for Axis Bank.he figures reflect a growing concern over the widening gap between fraud occurrence and actual recovery in the Indian banking sector. 

The State Bank of India (SBI), the country’s largest public sector lender, reported 34,491 cases of fraud amounting to Rs 19,774.23 crore between FY 2021–22 and December 2024. However, the bank managed to recover only Rs 114.30 crore, leaving Rs 19,659.93 crore in unrecovered losses.  

Punjab National Bank (PNB) reported 10,676 fraud cases involving a total of Rs  13,279.94 crore between FY 2021–22 and December 2024. Of this, only Rs 1,130.75 crore was recovered, leaving a staggering Rs  12,149.19 crore in unrecovered losses. 

ICICI Bank Limited reported the highest number of fraud cases 42,372 amounting to Rs 9,312.81 crore between FY 2021–22 and December 2024. However, it managed to recover only Rs 6.52 crore, leaving Rs 9,306.29 crore in unrecovered losses. In comparison, Union Bank of India reported 7,108 fraud cases involving Rs 9,579.93 crore, of which only Rs 701.96 crore was recovered,resulting in Rs 8,877.97 crore remaining untraced.

Bank of India reported 1,939 cases involving Rs 7,215.96 crore, with Rs 103.41 crore recovered and Rs 7,112.55 crore still unrecovered.

Meanwhile, HDFC Bank Ltd. reported 52,190 cases, the highest among all banks but with a significantly lower financial impact at Rs 1,460.90 crore. The bank recovered Rs 186.26 crore, leaving Rs 1,274.64 crore in losses.

YES BANK LTD reported a total of 9,319 fraud cases involving Rs 2,980.75  crore between FY 2021-22 and December 2024. Of this, Rs 8.19  crore was recovered, leaving a staggering Rs 2,972.56  crore in unrecovered losses. 

Bank and Institutions with Zero Recovery: 

Despite increasing incidents of financial fraud, several banks and financial institutions in India reported zero recovery on fraud cases filed between FY 2021–22 and FY 2024–25 (up to December 2024), according to data sourced through the Right to Information (RTI) Act.At least eight banks and institutions including foreign banks, small finance banks, and specialized financial entities failed to recover any amount from the fraud cases they reported during the period. While the number of frauds varied, each of these entities recorded 100% unrecovered losses, regardless of the amounts involved. 

Bank of Bahrain & Kuwait B.S.C., a foreign bank operating in India, reported 3 fraud cases involving a total amount of Rs 5.44 crore. However, no recovery was made.

BNP Paribas, a foreign bank operating in India, reported 2 fraud cases involving Rs 0.06 crore (Rs 6 lakh), with zero recovery. 

Doha Bank QSC, a foreign bank operating in India, reported 3 fraud cases involving Rs 17.62 crore, with no amount recovered.

JP Morgan Chase Bank, National Association, a foreign bank operating in India, reported 1 fraud case involving a nominal amount of Rs 0.0001 crore (Rs1,000) between FY 2021–22 and December 2024. The bank reported zero recovery, marking a complete loss even in a case of negligible value reflecting a zero-tolerance record on recovery during the period.

Capital Small Finance Bank Limited, a small finance bank, reported 105 fraud cases involving a total of Rs 1.59 crore(Rs 159.05 lakhs.)between FY 2021–22 and 2024-25. The bank reported zero recovery, leaving the entire amount in unrecovered losses.

Export Import Bank of India, a specialized government financial institution that provides financial assistance for Indian exports and imports, reported 6 fraud cases involving Rs 623.51 crore. No recovery was reported.  

Small Industries Development Bank of India (SIDBI), a development financial institution and not a regular commercial bank, reported 10 fraud cases involving  49.41 crore. No recovery was made. 

SOCIETE GENERALE, a 100% subsidiary focused on IT and business-process support (not a traditional banking entity), reported 1 fraud case involving Rs 103.94 crore, with zero recovery.

The figures for small finance banks and payment banks reflected an even steeper trajectory. Airtel Payments Bank Limited, for example, saw just 10 cases in FY 2021–22 , which exploded to 19,642 fraud cases in FY 2024–25. AU Small Finance Bank Limited moved from 54 cases in FY 2021–22 to 4,185 cases by FY 2024–25. Equitas Small Finance Bank Limited reported 58 cases in FY 2021–22 , jumping to 1,371 cases in FY 2024–25. Ujjivan Small Finance Bank Ltd showed an equally volatile spike with 383 cases in FY 2021–22 surging to 988 cases in FY 2024–25. The steep escalation among these emerging financial entities points to structural deficiencies in fraud risk management, particularly in high-volume, tech-driven customer interfaces that may lack robust monitoring.  

The RTI documents also include RBI’s clarification that frauds reported in any year may not correspond to the year of occurrence, as banks often report frauds after internal scrutiny, audits or external triggers such as complaints or regulatory inspections. This admission is significant, as it underscores how detection lags are embedded into the system, delaying not just reporting but potential legal action and recovery initiation. RBI’s disclosure also reflects that several high-value cases may remain under wraps until they pass through internal banking filters, leading to staggered disclosures and outdated intervention. Such conditions make it difficult for investigative agencies to coordinate time-bound action or for the judiciary to establish timely accountability.

The 60-year-old Thul, who has closely tracked fiscal malfeasance for over two decades, believes the situation reflects a deeper systemic failure in India’s institutional accountability ecosystem. In a formal representation submitted by ASRA to the Union Finance Ministry, Thul has demanded statutory reforms, including the formation of a national fraud recovery commission, judicial integration of fraud prosecution data, and real-time coordination between RBI, banks, and central investigative agencies. The RTI disclosures, now in public domain, leave little doubt that India’s financial institutions are not merely vulnerable to fraud but remain structurally ill-equipped to respond when trust is breached.