Indian Bank reports fraud of over Rs 33cr to RBI

 Indian Bank has reported a fraud of more than Rs 33 crore to the Reserve Bank, involving two of its accounts that turned into NPAs.

Two non-performing loan accounts, Raj Events and Entertainment and Capricorn Food Products India, have been declared as fraud and reported to the RBI as per regulatory requirement, the bank said in a stock exchange filing. Both the companies caused fraud in the nature of ‘diversion of funds’.

In the case of Capricorn Food Products, the amount involved is of Rs 22.36 crore, while in the case of Raj Events and Entertainment, the fraud amount involved is of Rs 10.97 crore. Provision held against Capricorn Food as of September 30, 2021 stood at Rs 8.54 crore and of Rs 1.65 crore in the case of Raj Events and Entertainment, the bank said.