Canara Bank updates on alleged fraud by Transstroy India Ltd

Canara Bank has announced regarding alleged fraud to the tune of Rs. 7926 Crore by M/s Transstroy India Ltd. The company 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 Rs.4765.70 Crore and the share of Canara Bank is only Rs.678.28 Crore. The account was declared as fraud and reported to RBI on 10.02.2020.

Canara Bank has made 100% provision for this account as per the prescribed prudential norms. The Company has already been declared as Wilful Defaulter on 26.12.2018 by the Bank. Out of 7926.01 Crore fraud amount appearing in the press note, the amount of lending made by all the 14 Consortium members is Rs.4765.70 Crore. Remaining amount was lent under Multiple Banking Arrangement. Out of this, exposure of Canara Bank is Rs.678.28 Crore only. The case was referred to NCLT and was admitted by NCLT, Hyderabad on 10.10.2018. The Company is under the process of liquidation.

Shares of CANARA BANK was last trading in BSE at Rs.121.7 as compared to the previous close of Rs. 124.1. The total number of shares traded during the day was 1848250 in over 11943 trades.

The stock hit an intraday high of Rs. 126 and intraday low of 118.55. The net turnover during the day was Rs. 224790293.

Source : Equity Bulls

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