Indian Bank declares Saravana Stores account as fraud

“We have to inform that non-performing account (NPA) Saravana Stores (Gold Palace) has been declared as fraud and reported to RBI as per regulatory requirement,” Indian Bank said in a regulatory filing.

Indian Bank declares Saravana Stores account as fraud
Provisions and contingencies were at Rs 839 crore as against Rs 4,042 crore and operating expenses decreased by 4% to Rs 2,530 crore as against Rs 2,637 crore.

State-owned Indian Bank on Wednesday said it has declared the NPA account of Saravana Stores with an outstanding balance of Rs 231 crore as fraud.

“We have to inform that non-performing account (NPA) Saravana Stores (Gold Palace) has been declared as fraud and reported to RBI as per regulatory requirement,” Indian Bank said in a regulatory filing.

The nature of the fraud is in the form of diversion of funds, said the lender, adding the outstanding balance on Saravana stood at Rs 230.74 crore.

The bank has held provision to the tune of Rs 115.32 crore against this as of December 31, 2020, it said.

Saravana Stores is a Tamil Nadu-based jewellery showroom group.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos