Canara Bank gave Rs 40-crore loan to Kolkata IT firm

Bengaluru, March 2: State-run Canara Bank on Thursday clarified that it gave only Rs 40 crore loan to the Kolkata-based RP Infosystems and its directors. "Under the consortium arrangement of 17 banks, we financed a working capital of Rs 40 crore to the company," said the city-based bank in a statement here. The bank's clarification came a day after the CBI filed a complaint against the laptop and desktop makers on Wednesday, alleging Rs 515-crore banking fraud, involving a consortium of 17 state-run and private banks across the country. The bank also clarified that it was not the leader of the consortium and said it had already treated the loan account to the IT firm as fraud in October 2015 and reported about it to the Reserve Bank of India (RBI). "Consequent upon the lead bank relinquishing its role as the leader of the consortium and as directed by the CBI, we were authorised by the remaining member banks to file a revised complaint with the CBI, which we filed on February 26,a said the statement. Besides Canara Bank, the consortium includes State Bank of India, Allahabad Bank, Punjab National Bank, Central Bank of India, Oriental Bank of Commerce and Federal Bank. "The IT company availed bank finance/funds by submitting fabricated debtors, receivables and inflated stock statements," said Canara Bank in the complaint to the CBI.