The banking sector requires a major comeback with the series of bank frauds that has shook the nation. The rising non-performing assets (NPAs) and corporate frauds find their roots in the top-level management or executive levels. The purpose of this study to analyse the behavioural component with corporate governance lapses for creating a trail and to what extent it can contribute to forensic analysis to help reduce and prevent fraud in the future.
This study is investigative in nature. This study uses case study approach by taking into account the major Advance–NPA–Fraud cases over period of 2010–2022. RBI data for bank advances, NPAs and advances-relate frauds from 2005 to 2019 were studies and interpreted for creating a trend and pattern for the reduction and prevention of frauds.
The authors found that behavioural factors and personalities affect the systems and culture of the company, thereby giving a jolt to the corporate governance mechanisms along with various entities like depositors, consumers and shareholders.
Assessing the behavioural aspects for risk mitigation remains unexplored in the banking sector. The personality dimension can help in contributing to comprehending the mental aspects and the reasons behind the combination of dark triads with economic offences.
This study is beneficial to all the beneficiaries of the banking sector and the economy at large in understanding the implications of risks because of patterns formed by emotions and vulnerability towards economic and fugitive economic crimes.
