Karnataka Bank reports Rs 13 crore fraud to RBI

The fraud was on account of diversion of funds', the lender said in a BSE filing.

Update: 2019-03-23 10:32 GMT
The bank extended the working capital facility under multiple banking arrangement.

New Delhi: Karnataka Bank on Saturday said it has reported to regulator RBI about a fraud amounting 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. 

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