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Market Cap £1.40bn
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Indian police arrest chief executive, director of state-run bank over loans

Wed 20th June, 2018 1:54pm
MUMBAI, June 20 (Reuters) - Indian police arrested the chief
executive and an executive director of state-run Bank of
Maharashtra  BMBK.NS  on Wednesday, accusing them of misusing
their authority in making loans to a property developer.
    Authorities have stepped up scrutiny of the state banking
sector after a more than $2 billion fraud unearthed in Punjab
National Bank  PNBK.NS , the second-largest state-run lender,
this year.  urn:newsml:reuters.com:*:nL4N1TM1IV
    Bank of Maharashtra Chief Executive Officer Ravindra Marathe
and an executive director, Rajendra Gupta, were among six people
arrested, police said.
    Among the rest are Sushil Muhnot, a former chairman and
managing director of the bank, a manager at the bank, and a
chartered accountant and an employee of D.S. Kulkarni Developers
Ltd (DSKDL)  DSKL.NS , police said.
    "Bank officers colluded with DSKDL by misusing their power
and authority with dishonest and fraudulent intention," the
police said in a statement.
    Bank officials at the offices of Marathe and Gupta declined
to comment. Muhnot could not be reached, and calls to the
developer's headquarters were not answered.
    Current and former officials at some other state lenders,
including IDBI Bank  IDBI.NS , Indian Bank  INBA.NS , Syndicate
Bank  SBNK.NS  and Canara Bank  CNBK.NS  have been investigated
over alleged loan fraud cases.  urn:newsml:reuters.com:*:nL3N1S374B
    State-run banks have reported 8,670 cases of fraudulent
loans totalling 612.6 billion rupees ($9 billion) over five
financial years up to March 31, 2017, central bank data shows.
($1=68.0900 Indian rupees)

 (Reporting by Rajendra Jadhav and Devidutta Tripathy
Editing by Sanjeev Miglani and Darren Schuettler)
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430;
Reuters Messaging:
devidutta.tripathy.thomsonreuters.com@reuters.net))
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