The bank held provision of Rs 115 crore against the account.
Indian Bank has declared Saravana Stores (Gold Palace), a non-performing asset account with outstanding dues of Rs 230.74 crore, as "fraud" and reported it to the Reserve Bank of India (RBI).The nature of the fraud is in the form of diversion of funds. The government-back lender held provision of Rs 115.32 crore against the said account as on 31 December 2020.
Indian Bank is a public sector bank. The Government of India held 88.06% stake in the bank as on 31 December 2020.
The bank reported 108.1% rise in net profit to Rs 514.29 crore on 75.6% increase in total income to Rs 11,421.34 crore in Q3 FY21 over Q3 FY20.
The scrip shed 0.35% to currently trade at Rs 113.95 on the BSE.
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