The Reserve Bank of India has imposed a monetary penalty of Rs 1 crore on Karnataka Bank for contravention of the directions contained in RBI Circulars on 'Lending to Non-Banking Financial Companies (NBFCS)' and 'Bank Finance to Non-Banking Financial Companies (NBFCS)' while sanctioning credit facilities to Infrastructure Leasing and Financial Services (IL&FS) and its group companies.
The Bank had already made full loan provision there is no other financial impact other than the penalty amount.
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