An audit of the Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN) in Bengaluru – where depositors have been defrauded –
has revealed that Rs 1,480 crore has been misappropriated and about Rs 890 crores or 60 per cent was given as loans to 24 accounts, the Karnataka assembly was informed on Monday.

In a response to a question raised by BJP MLA Ravi Subramanya, the department of co-operatives said, “in the audit report which has been shared with the government in the first week of September, it was revealed that the bank had a loss of Rs 1,923 crore of which Rs 1,480 crores were misappropriated.”

The documents show that a staggering loan of Rs 890 crore was released to 24 beneficiaries which is part of misappropriation.

As of July 9, the bank is liable to pay Rs 2,073 crore and Rs 375 crore as an interest to 994 fixed deposit holders.

In January last year, the Reserve Bank of India (RBI) imposed a withdrawal limit of Rs 35,000 citing the bank’s bad loans. The ceiling was raised to Rs 1 lakh later.

A source in the bank said that they are yet to submit a conclusive report to the government but a huge amount of money has been swindled.

While the bank heads had earlier tried to downplay the fraud saying they would recover the money, documents show that as on January 10, 2020, the bank’s total loan outstanding amount was Rs 1,567 crore and by 31 August 2021, only Rs 182 crore was recovered.

There are about 35,000 depositors at this co-operative bank where many…

Read more…