Canara Bank gives clarification on the exposure of Rs 678 crore BANK NEWS

 

The company was enjoying limits from various banks under multiple banking arrangements from 2001. Subsequently, a consortium with Canara Bank as a leader and 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.

 

Chennai: Canara Bank, a premier public sector Bank clarifies that it has an exposure of Rs.678.28 crore in the account of M/s Transstroy India Ltd, reported as fraud to RBI on 10.02.2020 where 100% provision has been made in the account.
 
M/s Transstroy India Ltd. (TIL), established in the year 2001, is in line of business of Contractors, Engineers, Promoters & Developers of Roads, Bridges, Tunnels, Highways, etc. The company was enjoying limits from various banks under multiple banking arrangements from 2001. Subsequently, a consortium with Canara Bank as a leader and 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.
 
Out of the 7926.01 crore fraud amount, the amount of lending made by all the 14 consortium members is Rs.4765.70 Crore. The 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 in the process of liquidation. The company has already been declared as a wilful defaulter on 26.12.2018 by Canara Bank.
 
About Canara Bank:
 
Widely known for customer centricity, Canara Bank was founded by Shri AmmembalSubba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangaluru, then a small port town in Karnataka. Canara Bank is the fourth-largest public sector bank in the country after its amalgamation with Syndicate Bank in April 2020. At present, it is functioning with 10,498 Branches, and 13,023 ATMs throughout. The Bank has gone through various phases of its growth trajectory over the hundred years of its existence. The growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. In June 2006, the Bank completed a century of operation in the Indian banking industry. The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks.
 


Posted Date :  19-12-20

Categories : BANK NEWS

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