InvestorQ : Can you tell me about the Rs.8,000 crore fraud that Canara Bank is involved in Hyderabad? Is the entire amount to be written off?
Rutuja Nigam made post

Can you tell me about the Rs.8,000 crore fraud that Canara Bank is involved in Hyderabad? Is the entire amount to be written off?

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rhea Babu answered.
4 weeks ago
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This time it is not PNB but Canara Bank and the fraud appears to be much larger than the fraud perpetrated by Nirav Modi. While the CBI has pegged the fraud at Rs.7926 crore, Canara Bank has clarified that its exposure to Transstroy India based in Hyderabad is just Rs.678 crore under a consortium lending arrangement.

Canara Bank also clarified that Transstroy India had been declared a wilful defaulter back in 2018i and the total exposure of Canara Bank to the group was wrongly quoted in the press. Canara Bank was part of a consortium that had sanctioned Rs.4766 crore and the share of Canara Bank in the consortium was only Rs 678.

Canara Bank also clarified that the fraud had been reported to the RBI almost a year back and the bank had already made a 100% provision for this account as per the extant prudential norms. Canara Bank also clarified that the company had already been referred to NCLT in Oct-18 and had been under process of liquidation since then.



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