Home CITY UPDATES Karnataka Bank reports Rs 34.16-crore fraud to RBI

Karnataka Bank reports Rs 34.16-crore fraud to RBI



Private sector lender Karnataka Bank on Friday said it has reported to the RBI a fraud of about Rs 34.16 crore in credit facilities extended to IL&FS Transportation Networks, which is a dud account now.

“The bank has reported to RBI (Reserve Bank of India) a fraud in the credit facilities extended earlier to IL&FS Transportation Networks Ltd with an outstanding balance of Rs 34.16 crore (defaulted entity),” Karnataka Bank said in a regulatory filing.

The lender said IL&FS Transportation had availed credit from it during 2016 under multiple banking arrangement in which Karnataka Bank was one of the members.

During 2018, the borrowing account was classified as non-performing asset and has been fully provided for, it added.

Karnataka Bank stock closed 0.72 per cent down at Rs 69.40 apiece on BSE. PTI


Please enter your comment!
Please enter your name here