BENGALURU: Canara Bank on Saturday clarified that it has an exposure of Rs 678.28 crore in the account of M/s Transstroy India Ltd, reported as fraud to the RBI on February 10, 2020, where 100 per cent provision has been made in the account.
M/s Transstroy India Ltd. (TIL), established in the year 2001, is engaged in building infrastructure across various sectors. The company was enjoying limits from various banks under a 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 4,765.70 crore, and the share of Canara Bank was only Rs 678.28 crore,” according to a statement issued by Canara Bank on Saturday.
“Out of Rs 7,926.01 crore fraud amount, the amount of lending made by all the 14 consortium members is Rs 4,765.70 crore. The remaining amount was lent under a multiple banking arrangement. Out of this, exposure of Canara Bank is Rs 678.28 crore only,” the statement said.
The case was referred to NCLT (National Company Law Tribunal ) and was admitted by NCLT, Hyderabad, on October 10, 2018. The company is under the process of liquidation. The company has already been declared as a wilful defaulter by Canara Bank on December 26, 2018, the statement added.