Canara Bank investigates unit fraud after whistleblower complaint – source


The letter of denunciation, sent at the end of December and also addressed to the Reserve Bank of India and the National Housing Bank, reported irregularities in one of the branches.

“We decided to act on this complaint given the seriousness of the situation and discovered that there were frauds on 37 accounts worth 39 million rupees ($504,149.54). provisions of an equivalent amount,” said the source, who declined to be named because the discussions were private.

False tax return documents had been submitted for these accounts, the source added. An internal committee is still investigating the case to learn more about the nature of the fraud.

Canara Band and Can Fin Homes did not immediately respond to requests for comment.

Shares of Canara Bank and Can Fin Home fell 8% and 7% respectively after media reports suggested the central bank may also be investigating the fraud. However, in a regulatory filing, Canara Bank said it had not received any intimations from the regulator regarding such an investigation.

The RBI did not immediately respond to a request for comment.

Earlier this month, Canara Bank posted a net profit of 16.66 billion rupees for the quarter to March, up from 10.11 billion rupees a year ago.

($1 = 77.3580 Indian rupees)



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