InvestorQ : Can you tell me about the latest reports about a massive fraud in Karnataka Bank?
Juvina Maggie made post

Can you tell me about the latest reports about a massive fraud in Karnataka Bank?

Answer
user profile image
Angel dcosta answered.
3 months ago


Karnataka Bank has officially informed to the RBI that it has been a victim of fraud to the tune of Rs.285 crore. This fraud pertains to the loans that the bank had extended to four corporate entities viz. Dewan Housing, Religare Finvest, Fedders Electric and Leel Electricals. Dewan Housing accounts for over 60% of this fraud. Now the RBI will initiate the investigation and take appropriate action.


user profile image
preetam lenka answered.
3 months ago


Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of more than ₹285 crores consequent to loans to four entities, including DHFL, gone bad.

A total of ₹285.52 crores has been reported as fraud wherein the bank was one of the consortium lenders from 2009 to 2014 to Dewan Housing Finance Corporation Ltd. (DHFL), Religare Finvest, Fedders Electric, and Engineering Ltd. and Leel Electricals Ltd, Karnataka Bank said.

The maximum is owed by DHFL at ₹180.13 crores, followed by Religare Finvest ₹43.44 crores, Fedders Electric ₹41.30 crores and Leel Electricals ₹20.65 crores, the bank said.