Banking

Karnataka Bank reports frauds of ₹160.35 cr in 2 cases

Read more at www.thehindubusinessline.com

Karnataka Bank Ltd has informed the BSE that it has reported to the Reserve Bank of India frauds in the credit facilities extended to two listed companies. The total amount of fraud reported in these two credit facilities stood at ₹160.35 crore.

The bank said both these accounts were classified as NPA (non-performing asset), and have been fully provided for. “As such, there is no impact on the financials of the bank going forward,” it said. An outstanding amount of ₹138.41 crore has been treated as fraud in the case of Reliance Commercial Finance Ltd, and 100 per cent provision has been made. The percentage of bank’s share in the multiple banking arrangement was 1.98 per cent. There were 22 lenders under multiple banking arrangement in this case. It said the company was dealing with the bank since 2014.

Also read: Karnataka Bank gets additional director

In the case of Reliance Home Finance Ltd, an outstanding amount of ₹21.94 crore has been treated as fraud, and 100 per cent provision has been made. The percentage of bank’s share in the multiple banking arrangement was 0.39 per cent. There were 24 lenders under multiple banking arrangement in this case. It said the company was dealing with the bank since 2015.

Read more at www.thehindubusinessline.com

Show More

Related Articles

Back to top button