Karnataka Bank reports Rs 13 cr fraud to RBI

Chennai: Karnataka Bank has said it has reported to regulator RBI about a fraud amounting to Rs 13.26 crore in the fund-based working capital facility extended to SRS Finance Ltd. The fraud was on account of ‘diversion of funds’, the lender said in a BSE filing.

The bank extended the working capital facility under multiple banking arrangement and necessary accounting treatment has already been given as per the extant RBI guidelines, it added.

NT Bureau