Shares of IDBI Bank fell on Wednesday, a day after it disclosed that fraudulent loans worth Rs 772 crore were issued from five of its branches in Telangana and Andhra Pradesh. The company on Tuesday said the Central Bureau of Investigation had filed cases for two of the five complaints, Reuters reported.
At 2.40 pm on Wednesday, the value of its shares dropped 4.26% to Rs 73 from Tuesday’s close.
IDBI Bank said some of the loans, which were granted between 2009 and 2013 to fish farming businesses, were issued against fake lease documents and by inflating the value of collateral. The lender found that two of its officials had made serious errors while processing and issuing the loans. The bank has suspended one of them while the other has retired.
The bank has started a quality assurance audit, which it expects to complete by April.