Karnataka Bank reports fraud amounting to Rs 86.47 crore

Karnataka Bank on 28 March 2018 has reported a fraud to Reserve Bank of India amounting to Rs 86.47 crore in the fund based working capital facilities extended to Gitanjali Gems on account of non-realization of export bills and diversion of funds. The Bank does not have any LoU exposure in the aforesaid company. The said working capital formalities were extended by the Bank under consortium arrangement and necessary provisions will be made as per the extant RBI Guidelines.

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