Business

After PNB, IDBI fraudulent deals under probe; share prices drag down

is said that fraudulent loans of Rs 772 crore ($118.8 million) were issued from five of the bank's branches

Amid ongoing PNB multi-crore bank scam, yet another scam has been speculated, this time in IDBI bank.

According to one report, the news led to dragging down of IDBI Bank Ltd’s shares.

It is said that fraudulent loans of Rs 772 crore ($118.8 million) were issued from five of the bank’s branches in Andhra Pradesh and Telangana.

It is also informed that the Central Bureau of Investigation (CBI) has so far registered cases for two of the five complaints and these relate to branches at Basheerbagh and Guntur.

Sources informed that the some of the loans, which were issued during fiscal years 2009-2013 to fish farming businesses, were reportedly obtained against fake lease documents of non-existent fish ponds and also by inflating the value of collateral.

The bank recently assured that it has initiated a quality assurance audit, expected to be completed by April.

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