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.
![Karnataka Bank on Tuesday reported 92 per cent slump in net profit at Rs 11 crore for the March quarter due to multi-fold jump in provisioning for bad assets. Karnataka Bank on Tuesday reported 92 per cent slump in net profit at Rs 11 crore for the March quarter due to multi-fold jump in provisioning for bad assets.](https://s3.ap-southeast-1.amazonaws.com/images.asianage.com/images/aa-Cover-cfup262em65p4eb0ho124pvo35-20180515174502.Medi.jpeg)
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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