Karnataka Bank had deemed a loan of more than 160 crores to Reliance Companies
Karnataka Bank stated that it has worked with Reliance Home Finance since 2015 and Reliance Commercial Finance since 2014.
Karnataka Bank, a private sector lender, has declared Reliance Home Finance and Reliance Commercial Finance accounts to be fraudulent, with total loan outstandings of more than 160 crores to the lender.
The Bank stated in a regulatory filing that it had notified the Reserve Bank about irregularities in credit facilities provided previously to two listed firms, Reliance Home Finance with a loan outstanding of 21.94 crores and Reliance Commercial Finance with a debt due of 138.41 crores.
In the illustration of Reliance Home Finance, as many as 24 lenders were part of multiple banking arrangements, while in Reliance Commercial Finance, as many as 22 lenders were part of the lending arrangement.
They had also stated that their share of the multiple banking arrangements with Reliance Home Finance is 0.39% and 1.98% with Reliance Commercial Finance. The lender stated that it had made provisions of up to 100% against the loans granted to the firms in both situations.