Comments
Canara Bank has clarified that it has an exposure of ₹678.28 crore to Transstroy India Ltd which allegedly committed a bank fraud and is under liquidation. In a notice to the BSE, Canara Bank said that it has already made 100 per cent provision for the account in its books.
Transstroy, a construction company, and its directors were booked by the CBI last week for an alleged fraud of ₹7,926 crore affecting a consortium of banks led by Canara Bank. The company was declared as willful defaulter by Canara Bank in December 2018.
Canara Bank’s exchange notification said that Transstroy was enjoying limits from various Banks under Multiple Banking Arrangement from 2001. Subsequently, a consortium with Canara Bank as leader with 13 other banks was formed in 2013 and the total limit sanctioned was ₹4,765.70 crore and the share of Canara Bank is ₹678.28 crore. The account was declared as fraud and reported to RBI on February 10 this year.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.