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Karnataka Bank declines on reporting Rs 34.16-crore fraud to RBI

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Karnataka Bank fell 2.23% to Rs 67.85 after the bank reported to Reserve Bank of India (RBI) a fraud in the credit facilities extended earlier to IL&FS Transportation Networks with an outstanding balance of Rs 34.16 crore.

IL&FS Transportation Networks availed credit facilities from Karnataka Bank during 2016 under multiple banking arrangement wherein, Karnataka Bank was one of the member banks and during 2018, the borrowing account was classified as Non-Performing Asset (NPA) and has been fully provided for. There shall be no impact on the financials of the bank ahead, it added. The announcement was made post trading hours on Friday, 19 February 2021.

Karnataka Bank is a scheduled commercial bank. Karnataka Bank's standalone net profit rose 9.9% to Rs 135.38 crore on a 6.3% decline in total income to Rs 1,868.62 crore in Q3 December 2020 over Q3 December 2019.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, February 22 2021. 09:59 IST
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