IDBI Bank detects loan fraud of over Rs 750 crore, shares plunge
Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral.
- Mar 28, 2018,
- Updated Mar 30, 2018 10:25 AM IST
IDBI Bank Ltd said on Tuesday fraudulent loans of over Rs 773 crore were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday.
Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said.
The company found major lapses in processing and disbursing the loans by two of its officials. The lender dismissed one of the officials, while the other official had already retired, it said.
The Central Bureau of Investigation has registered cases for two of the five complaints relating to branches at Basheerbagh and Guntur, the company said.
The bank said earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April.
IDBI shares fell as much as 3.5 per cent to 73.6 rupees, while the index for public sector lenders Nifty PSU Bank index dropped as much as 1.8 per cent.
IDBI Bank Ltd said on Tuesday fraudulent loans of over Rs 773 crore were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday.
Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said.
The company found major lapses in processing and disbursing the loans by two of its officials. The lender dismissed one of the officials, while the other official had already retired, it said.
The Central Bureau of Investigation has registered cases for two of the five complaints relating to branches at Basheerbagh and Guntur, the company said.
The bank said earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April.
IDBI shares fell as much as 3.5 per cent to 73.6 rupees, while the index for public sector lenders Nifty PSU Bank index dropped as much as 1.8 per cent.