Dena Bank CMD Ashwani Kumar has said the forensic investigation report on an alleged scam in the bank's Malabar Hill branch was almost ready and would be submitted soon. It was alleged at the branch, Rs 256 crore received as fixed deposits was siphoned off. According to reports, Deloitte is looking into the matter, following a finance ministry directive that a forensic investigation be carried out.
Between January 30 and May 5 this year, the Malabar Hill branch had received bulk term deposits from various entities/government organisations. Subsequently, term deposits of Rs 256.69 crore were pledged to the bank by the same signatories in order to secure overdraft facilities of Rs 223.25 crore.
Report stated the funds were surreptitiously transferred out of the bank by creating a fake overdraft facility.
The branch manager has been suspended and the branch staff have been transferred, according to filing with stock exchanges.
Kumar said to avoid any such scams, transactions worth more than Rs 5 crore were now being monitored online.
