Vigilance investigation finds Dormant Account Scam of Rs. 14 lakh in SBI

A scam of ₹14.60 lakh has come to light at the State Bank of India (SBI)’s Personal Banking Branch (PBB) located on Mall Road, where a dormant account was fraudulently activated. Now, the bank’s Vigilance Department has started a full-scale investigation into the matter.

Dormant Account Misused to Withdraw Money

According to reports, a dormant account belonging to Shiromani Yadav, a resident of Civil Lines, Kanpur Nagar, was suddenly activated. This account had been inactive since 2022. Shockingly, ₹14.60 lakh was withdrawn from it after it was reactivated on March 25, 2025, through a fake e-KYC process.

Accused Deputy Manager Suspended

A Deputy Manager of the bank, who is also a member of the SBI Officers Association, is accused of being involved in the scam. He has been suspended while investigations are underway. Statements from the bank employees and officers who were working at the branch during that period have also been recorded.

Fake Aadhaar and Address Documents Under Probe

During the initial internal inquiry, it was found that fake Aadhaar cards and false address documents were used in the process of reactivating the account. These documents are currently being verified. Earlier, the case was being looked into by the Regional Manager of Lucknow and the Assistant General Manager of Kanpur. But now, Vigilance authorities have officially taken over the case.

CCTV Footage and Employee Statements Examined

As part of the investigation, CCTV footage from the Mall Road PBB branch and the World Bank branch has been examined. Officials from the Vigilance Department have also questioned the main accused and recorded statements from several employees from both branches.

Anonymous Tip Uncovered the Scam

The scam first came to light after an anonymous letter was sent to the Chief General Manager of SBI on May 1. The letter detailed how ₹14.60 lakh had been fraudulently withdrawn from the dormant account and named the Deputy Manager and other employees involved.

Interestingly, when internal discussions about the fraud began, the money was returned to the account on April 11, and the account was again deactivated on April 15—possibly in an attempt to cover up the fraud.

Investigation Report Expected Soon

Vigilance officers are now preparing their final report based on the documents, CCTV footage, and employee statements. This report is likely to be submitted to senior officials soon.

Source - hellobanker

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RBI imposed Rs 1.72 crore Penalty on PSU Bank

 

The Reserve Bank of India (RBI) has fined the State Bank of India (SBI) Rs.1.72 crore (Rs.1,72,80,000) on April 29, 2025. The fine was for not following certain rules related to:

Giving loans and advances

• Protecting customers from unauthorized electronic transactions
• Proper procedures for opening current accounts

This penalty was imposed under RBI’s powers as per the Banking Regulation Act, 1949. RBI had carried out an inspection of SBI based on its financial position as of March 31, 2023. During this review, RBI found that SBI had not followed some of its rules. A notice was sent to SBI asking why it should not be penalized.

After reviewing SBI’s written and verbal responses, RBI decided that the following issues were valid:

1. SBI gave a bridge loan to an organization based on money it expected to receive from the government (as subsidies or reimbursements).
2. SBI delayed refunds for customers affected by unauthorized online transactions. In some cases, it did not credit accounts within 10 working days or compensate customers within 90 days.
3. SBI opened or kept some current accounts in ways that did not follow the RBI’s rules.

RBI clarified that this action is about breaking regulatory rules. It does not mean the bank’s deals with customers are invalid. Also, this penalty does not stop RBI from taking other actions against the bank in the future.

What is a Bridge Loan?

A bridge loan is a short-term loan used to “bridge the gap” between two financial events—typically between the need for immediate funds and the arrival of expected funds. A bridge loan helps someone get quick money now while waiting for larger funds to come in later. Example: A company is expecting a Rs.5 crore subsidy from the government, but needs Rs.1 crore now to keep operations going. It can take a bridge loan from a bank, and repay it once the subsidy arrives.

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Assistant General Manager(AGM) arrested in Rs.27 Crore Loan Fraud

The Assistant General Manager (AGM) of the State Bank of India (SBI) has been arrested by the Crime Investigation Department (CID) for his role in a loan fraud case involving Rs 27 crore in 2013.

From 2009 to 2011, the 53-year-old officer, K Sanjay, was employed as a Relationship Manager at SBI's Balanagar SME (Small and Medium Enterprises) branch. He is charged with using unlawful means to assist a business called Adarsh Communications Pvt. Ltd. in obtaining a loan of Rs 27 crore while he was employed at the bank.

These illegal methods included:

• Accepting fake documents (forged papers).
• Falsely claiming that agricultural land was actually non-agricultural, so it could be used to get the loan.
• Ignoring bank rules and not properly checking or securing the property kept as guarantee (collateral) for the loan.

The main people behind Adarsh Communications are:

• M. Anjaneyulu (Managing Director)
• Manikonda Reeta (Director and his wife)

They were hiding from the police since 2013 but were finally caught by the CID in Bengaluru in May 2024.

Another bank employee, G. Ravindranath, who was working as a Customer Support Officer at the same branch, is also accused in the case. However, he has not yet been arrested.

According to CID officials, Sanjay and others broke bank rules, trusted fake documents, and failed to protect the bank’s money. Because of their actions, the bank lost a huge amount.

The charges filed against them include:

• Cheating
• Criminal breach of trust (breaking the trust given to them)
• Forgery (using fake documents)

K Sanjay was brought to court and is now in judicial custody (kept in jail by court orders until the investigation or trial continues). More details will be released soon.

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State Bank of India(SBI) Q4 Net profit falls 10%

 On May 3, State Bank of India Ltd. (SBI), the biggest lender in the nation, reported a 10% decline in its fourth-quarter standalone net profit, coming in at Rs 18,643 crore. From January to March of 2023–2024, SBI made a profit of Rs 20,698 crore. For FY25, the board of the bank has announced a dividend of Rs 15.90 per equity share. In a regulatory statement, SBI stated that the overall revenues for the March quarter was Rs 1,43,876 crore, up from Rs 1,28,412 crore during the same period last year.

During the quarter, the bank earned an interest income of Rs 1,19,666 crore as against Rs 1,11,043 crore a year ago.

The lender saw an improvement in asset quality, with gross non-performing assets (NPAs) declining to 1.82% of the total advances in the fourth quarter from 2.24 % as at March-end 2024. Similarly, net NPAs eased to 0.47 per cent as against 0.57 per cent.

On a consolidated basis, SBI's net profit in the quarter fell 8 per cent to Rs 19,600 crore as against Rs 21,384 crore in the same period a year ago. Total income, however, increased to Rs 1,79,562 crore from Rs 1,64,914 crore.

Besides, the board has approved raising equity capital of up to Rs 25,000 crore (including share premium) in one or more tranches during 2025-26 through Qualified Institutional Placement (QIP)/ Follow on Public Offer (FPO) or any other mode.

SBI Chairman CS Setty said, "Though the Indian economy is less impacted by tariffs, the uncertainty over tariffs will impact the economy and investment scenario."

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High Court orders Bank to deduct fine from Branch Manager's Salary

The State Bank of India (SBI) branch manager in Kunjaban was fined Rs.50,000 by the Tripura High Court for improperly halting a retired CRPF jawan's pension. The fine will be subtracted from the SBI branch manager's pay and sent to the government treasury via challan.

After retiring from the Central Reserve Police Force (CRPF) on December 31, 2012, Mahesh Lal Yadav began receiving his monthly pension through the SBI Kunjaban branch. But beginning in April 2022, his pension benefits abruptly and mysteriously halted.

Yadav requested an explanation, but was informed that an inquiry officer had ordered the pension to be discontinued. It appears that this cop was looking into a criminal case against him.

The crucial point is that, prior to April 2022, Yadav had previously been exonerated of all counts and found "not guilty." Therefore, there was no justification for halting his pension. Yadav chose to seek justice in the High Court after attempting in vain to get in touch with the bank and the regional manager.

The High Court ruled that the bank was at fault and that the pension was unlawfully halted. The Branch Manager was fined Rs.50,000 and held personally liable by the court. In addition, the court ordered that this fine be deducted straight from the Branch Manager's pay and placed in the government treasury as a form of discipline.

Source- hellobanker.in

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Indian banks win bankruptcy appeal in Vijay Mallya case in UK

An key legal action against Vijay Mallya, the former owner of Kingfisher Airlines, has been won in London by a group of Indian banks, led by the State Bank of India (SBI). The case concerned Mallya's recovery of a sizable debt following the failure of his airline. Options for home loans

Anthony Mann, a judge at the London High Court, made the announcement on Wednesday. The bankruptcy ruling against Vijay Mallya is still in effect as a result of his decision in favor of the Indian banks. For the banks, this is a significant step in recovering their funds.

What Is the Case About?

Following a decision by the Debt Recovery Tribunal (DRT) in India, Indian banks sued Mallya in the UK back in 2017.  Due to Mallya's personal guarantee for Kingfisher Airlines' loans, the DRT has ordered him to repay more than GBP 1.12 billion, or around Rs 11,000 crore.

 In the United Kingdom, the banks filed for bankruptcy against Mallya in 2018.  Mallya attempted to halt it by claiming that the banks had security on his assets and that he had previously offered enough assets in India that had been confiscated by the Enforcement Directorate(ED).

What Happened in the Court?

A UK court ruled in 2020 that the banks did have security over Mallya's assets, which partially invalidated the bankruptcy petition.  However, the banks appealed that decision, and they were granted permission to do so in 2021.  Additionally, they amended their bankruptcy petition to state that they would relinquish any claim to Mallya's Indian assets in the event that he was found bankrupt.

 Mallya resisted this modification, claiming it violated Indian law and public policy.  However, the UK court ruled in April 2021 that the modification was lawful and did not violate any Indian regulations.

Now, in the latest ruling, the High Court has:

• Allowed the banks’ appeal that they do not hold security on Mallya’s assets
• Rejected Mallya’s attempt to challenge the bankruptcy order
• Said the bankruptcy order against Mallya stands firm

What the Banks’ Lawyers Said

The law firm TLT LLP, which represents the banks, said this decision is very important. It proves that the banks were right to file the bankruptcy case and that the assets taken by the ED in India don’t cancel the debt under English law.
Nick Curling, legal director at TLT, said, “This is a big win for the banks. We have been working on this case since 2017.”

What Vijay Mallya’s Side Says

Mallya, who filed for bankruptcy in July 2021, is currently pursuing a different legal path. He has applied to the UK court to have the bankruptcy judgment revoked, claiming that the assets in India were sufficient to cover the banks' payments.

Mallya will keep fighting, according to his attorney Leigh Crestohl, who has also filed a separate petition in India's Karnataka High Court. He requests that the banks provide a detailed report on their recovery efforts.

Meanwhile, Mallya is still out on bail in the UK. He is also involved in a private legal matter, which is believed to be related to his asylum request in the UK. This is separate from his extradition case to India, where he is wanted on charges of fraud and money laundering.

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New Chairman and Deputy Chairman elected in IBA

According to a release, CS Setty, the chairman of State Bank of India (SBI), has been chosen as the next chairman of the Indian Banks' Association (IBA) governing committee. Tools for managing finances 

 In addition, Madhav Nair from Bank of Bahrain & Kuwait B.S.C., MD A. Manimekhalai, and MD Swarup Kumar Saha from Punjab & Sind Bank have been named Deputy Chairmen of IBA. B. Ramesh Babu, MD of Karur Vysya Bank, has been chosen to serve as Honorary Secretary. 

 Atul Kumar Goel, a former MD of Punjab National Bank, was appointed CEO of IBA earlier this month, replacing Sunil Mehta. On important sectoral issues, the IBA, the trade association for public and private sector banks, helps bankers and the banking regulator consult.

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SBI Concurrent Auditor Recruitment 2025 Notification Released for 1194 Posts

State Bank of India(SBI) Bank Concurrent Auditor Recruitment 2025:  1,194 concurrent auditor posts are being filled on a contractual basis by the State Bank of India (SBI). On February 18, 2025, the official announcement for the SBI Concurrent Auditor Recruitment 2025 was released. Applications can be submitted online between February 18, 2025, and March 15, 2025.

Important Dates

• Apply Online Start Date : 18 February 2025
• Last Date to Apply : 15 March 2025
• Interview Date: To be released

Application Fee

• Gen / OBC / EWS : Rs. 0/-
• SC / ST / PH : Rs. 0/-
• Mode of Payment : Not Applicable

SBI Bank Concurrent Auditor Recruitment 2025 Age Limit

• Minimum Age : Na
• Maximum Age : 65 Years
• Age Limit as on 18/02/2025
• The age relaxation will be given as per the rules.

Educational Qualification

Post Name

Qualification

Concurrent Auditor

Retired Bank Person as MMGS-III, SMGS-IV/V & TEGS-V Officer. Please check notification PDF for more details.

SBI Bank Concurrent Auditor Recruitment 2025 Vacancy Details

Post Name

Vacancy

Concurrent Auditor

1194

SBI Bank Concurrent Auditor Recruitment 2025 Selection Process

The SBI Bank Concurrent Auditor Recruitment 2025 selection process includes the following stages:

• Shortlisting
• Interview
• Document Verification
• Medical Examination

How to Apply for SBI Bank Concurrent Auditor Recruitment 2025

To apply for the SBI Concurrent Auditor Recruitment 2025, follow these steps:

• Visit the official SBI careers website.
• Register and complete the online application form.
• Upload the necessary documents, including a photograph, signature, and ID proof.
• Submit the application form before the deadline.

Notification PDF  -    Click Here

Apply Online      -      Click Here

Official Website  -     Click Here

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