Karnataka Bank Ltd reports exposure to Sintex Industries Ltd as fraud

M/s. Sintex Industries Ltd. (Defaulted entity) (Scrip Code:502742, SINTEX) dealing with us since 2016 had availed various credit facilities under Consortium Arrangement wherein, we were one of the fifteen member banks with our Bank's exposure being at around 1.74 percent of the total exposure. On the basis of forensic auditor's report submitted to the Consortium, some of the member banks have reported to the Reserve Bank of India (RBI) regarding fraud in the borrowing account.

In line with the Consortium decision, Karnataka Bank has reported to RBI a fraud amounting to Rs.107.99 crore in the credit facilities extended earlier to the aforesaid borrowing account, on account of diversion of funds. During August 2019, the borrowing account was classified as a Non-Performing Asset and has been fully provided for and as such, no impact on the financials of the Bank going forward.

Shares of KARNATAKA BANK LTD. was last trading in BSE at Rs.41.8 as compared to the previous close of Rs. 40.85. The total number of shares traded during the day was 74983 in over 526 trades.

The stock hit an intraday high of Rs. 42.2 and intraday low of 40.9. The net turnover during the day was Rs. 3112505.

Shares of SINTEX INDUSTRIES LTD. was last trading in BSE at Rs.2.08 as compared to the previous close of Rs. 1.99. The total number of shares traded during the day was 8130534 in over 360 trades.

The stock hit an intraday high of Rs. 2.08 and intraday low of 1.99. The net turnover during the day was Rs. 16897067.

Source : Equity Bulls

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