Sunday, 20 December 2020

CLARIFICATION FROM CANARA BANK

 CLARIFICATION FROM CANARA BANK

 

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 arrangement 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 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 under the process of liquidation. The company has already been declared as willful defaulter on 26.12.2018 by Canara Bank.

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