Karnataka Bank shares slump over 4 pc

New Delhi, Feb 22 (PTI) Shares of Karnataka Bank Ltd on Monday declined over 4 per cent after reporting 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.

On BSE, the shares ended 3.96 per cent lower at Rs 66.65 and had touched an intra-day low of Rs 66.1.

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Similarly, on NSE, the scrip decreased 4.53 per cent to Rs 66.35. It was trading at an intra-day low value of Rs 66.35.

"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 had said in a regulatory filing on Friday.

The lender said IL&FS Transportation had availed credit from it during 2016 under multiple banking arrangement 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, it added.
 

The story has been taken from a news agency