Karnataka Bank shares fall 3% on reporting Rs 34.16 crore fraud in IL&FS Transport

The lender said IL&FS Transportation had availed credit from it during 2016 under multiple banking arrangements in which Karnataka Bank was one of the members.

February 22, 2021 / 11:19 AM IST
 
 
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Karnataka Bank share price was trading lower by 3 percent after the bank reported to the RBI a fraud of about Rs 34.16 crore in credit facilities extended to IL&FS Transportation Networks.

The stock was trading at Rs 67.35, down Rs 2.05, or 2.95 percent. It has touched an intraday high of Rs 68.30 and an intraday low of Rs 66.65.

The private sector lender on February 19 said it has reported to the RBI a fraud of about Rs 34.16 crore in credit facilities extended to IL&FS Transportation Networks, which is a dud account now.

"The bank has reported to RBI (Reserve Bank of India) a fraud in the credit facilities extended earlier to IL&FS Transportation Networks Ltd with an outstanding balance of Rs 34.16 crore (defaulted entity)," Karnataka Bank said in a regulatory filing.

The lender said IL&FS Transportation had availed credit from it during 2016 under multiple banking arrangements in which Karnataka Bank was one of the members. During 2018, the borrowing account was classified as a non-performing asset and has been fully provided for, it added.

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According to Moneycontrol SWOT Analysis powered by Trendlyne, MFs decreased their shareholding last quarter. It has declining net cash flow: company not able to generate net cash.

However, Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.

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Moneycontrol News
first published: Feb 22, 2021 11:19 am

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