Karnataka Bank dips on fraud

Karnataka Bank on Friday said that it has reported a fraud to the RBI to the tune of about Rs 34.16 crore in credit facilities extended to IL&FS Transportation Networks, which is a dud account now.

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 non-performing asset and has been fully provided for.

The Bank though has said that going forward, it expects no financial impact on its books due to this fraud.

Nevertheless, the stock is down in the red today, opening 2% lower at Rs.68 and going down further by 4% to its intraday low at Rs.66.65.