InvestorQ : Can you tell me about the fraud that Karnataka Bank has recently reported to the RBI?
Priyanka N made post

Can you tell me about the fraud that Karnataka Bank has recently reported to the RBI?

Answer
image
Neelam Naik answered.
3 months ago
Follow

Karnataka Bank has joined the long list of banks that have recently reported frauds to the RBI. Last week, the bank reported a fraud of Rs.34.16 crore in credit facilities extended to IL&FS Transportation Networks by Karnataka Bank. The client is a dud account now. This is part of the story of the financial system being held to ransom by the massive fraud that was committed by IL&FS group on the banks and its shareholders.

Karnataka Bank has specifically stated that IL&FS Transportation had availed credit from Karnataka Bank during the year 2016 as part of a multiple banking arrangement in which Karnataka Bank was one of the members of the syndicate. In 2018, the borrowing account of IL&FS Transportation was declared defunct and fully provided for.

1 Views