Karnataka Bank Reports ₹86.5 Cr Fraud

Karnataka Bank Ltd has reported a fraud to the tune of ₹86.47 crore.

On late Wednesday evening, Karnataka Bank Ltd had informed the stock exchanges that it has reported a fraud to the Reserve Bank of India (RBI) amounting to ₹86.47 crore in the fund-based working capital facilities extended to Gitanjali Gems Ltd on account of non-realisation of exports bills and diversion of funds. However, the bank does not have any LoU exposure in Gitanjali Gems Ltd, it said.

The working capital facilities were extended by the bank under the consortium arrangement and necessary provisions will be made as per the extant RBI guidelines, the bank said in its statement to stock exchanges.