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Last Trade - 12/05/21

Sector
Financials
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Market Cap £1.40bn
Enterprise Value £2.87bn
Revenue £1.92bn
Position in Universe 232nd / 3110

UPDATE 1-Indian police arrest CEO, director of state-run bank over loans

Wed 20th June, 2018 6:35pm
(Adds bank comment)
    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.
    Bank of Maharashtra Chief Executive Officer Ravindra Marathe
and an executive director, Rajendra Gupta, were among six people
arrested, police said.
    Among the others arrested were 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.
    The bank said in a statement on Wednesday the loans were
sanctioned to DSKDL as per the bank’s lending norms. The bank's
statement said it was in the process of recovering the loans. It
also said its total outstanding exposure to the DSKDL was 945.2
million Indian rupees ($13.89 million).
    In a filing to the Indian stock exchange, the bank confirmed
the arrest of Marathe and Gupta, saying they would be in police
custody until June 27. It did not comment on arrest of Munhot,
who could not be reached for comment.
    DSKDL did not immediately respond to Reuters calls seeking
comment.
    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
    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 over five financial years
up to March 31, 2017, central bank data shows.
 


($1 = 68.0550 Indian rupees)

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