Karnataka Bank falls 3% on reporting fraud of Rs 13.26 cr to RBI

Share price of Karnataka Bank fell 3.7 percent intraday March 25 after the company reported a fraud of Rs 13.26 crore to the Reserve Bank of India (RBI).

The bank has reported a fraud to RBI amounting to Rs 13.26 crore in the fund based working capital facility that was extended to SRS Finance Ltd., on account of diversion of funds, as per a bank release on BSE.

The said working capital facility was extended by the bank under multiple banking arrangements and necessary accounting treatment has already been given as per the extant RBI guidelines.

At 1320 hours, Karnataka Bank was quoting at Rs 124.85, down Rs 3.75, or 2.92 percent on the BSE.