Fraud hit IDBI finalises sale of BKC office

State-run IDBI Bank, which is in full media glare following the news of Rs. 772 crore fishery loan scam has finalised a deal to sell its office in BKC, Mumbai.

IDBI Bank's BKC office property will be sold to SEBI.

The fraud was committed at the bank's Andhra Pradesh and Telangana branches between 2009 and 2013. The loans were issued on fake documents of non-existing fish ponds. Loans totaling Rs. 772 crore were issued by extending the limits of Kissan Credit Card loan limit to Rs. 5 crore which is actually for only Rs. 25 lakh. Two top officials and many other officials are being investigate for hatching this conspiracy to fraudulently acquire fish farming business loans.

In a statement issued to the exchanges, IDBI Bank said that these loans had been identified as fraud and were provisioned to the extent of 100 per cent and will have no further impact on the bank's profitability.

IDBI Bank registered revenue of Rs. 5,797.20 crore in Q3FY18 as against Rs. 6,004.32 crore in Q2FY18. The bank reported net loss of Rs. 1,524.31 crore in Q3FY18.

Meanwhile, on Wednesday, the stock of IDBI Bank closed at Rs. 72.25 per share, down by 5.25 per cent.