Karnataka Bank reports Rs 13 cr fraud to RBI

Agenciesss

Karnataka BankNSE -1.98 % on Saturday said it has reported to regulator RBI about a fraudamounting 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.

[“source=economictimes.indiatimes.”]