Canara Bank clarifies: Rs 40Cr loan to IT firm RP, reported fraud in 2015

Bengaluru, March 02: 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.