Karnataka Bank reports fraud of Rs 34 crore against IL&FS Transportation

Mangaluru (Karnataka) [India], February 19 : Karnataka Bank has reported to the Reserve Bank of India a fraud in its credit facilities extended to IL&FS Transportation Networks Ltd with an outstanding balance of Rs 34.16 crore.
"The above entity had availed credit facilities from us during 2016 under multiple banking arrangements wherein our bank was one of the member banks and during 2018, the borrowing account was classified as a non-performing asset and has been fully provided for."
"As such, there is no impact on financials of the bank going forward," said the private sector lender in a statement issued on Friday.
IL&FS, a major infrastructure financing and construction company, collapsed in late 2018 after a series of defaults that triggered fear of contagion in India's financial sector and forced the government to take control and overhaul its board.