State-owned Indian Bank on Friday declared Lanco Infratech and Basundhara Green Power as fraud accounts with a total outstanding balance of over Rs 589 crore.
"We have to inform you that fully provided non-performing accounts have been declared as fraud and reported to RBI as per regulatory requirements," it said in an exchange filing.
Lanco Infratech Ltd with a loan outstanding of Rs 577.47 crore to the bank, caused the fraud in the nature of diversion of funds.
Indian Bank said it has held a provision of an equal amount, Rs 577.47 crore, against this account.
Basundhara Green Power Ltd on the other hand caused the fraud by way of defective title deed or imperfect mortgage, the bank said.
The provision held is 100 per cent at Rs 11.64 crore, it added.
(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )