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IDBI Bank Ltd had said on Tuesday fraudulent loans of Rs 772 crore ($118.8 million) were issued from five of its branches in Andhra Pradesh and Telangana, sending its shares lower on Wednesday.
Some of the loans, which were issued during fiscal years 2009-2013 for fish farming businesses, were obtained against fake lease documents of non-existent fish ponds and by inflating the value of collateral, the company said.
The lender found major lapses in processing and disbursing the loans by two of its officials. The lender dismissed one of the officials, while the other official had already retired, it said.
The Central Bureau of Investigation (CBI) has registered cases for two of the five complaints, relating to the branches at Basheerbagh and Guntur, IDBI Bank said.
The bank had said earlier on Tuesday it initiated a quality assurance audit, expected to be completed by April.
IDBI Bank shares fell as much as 3.5 per cent to Rs 73.6 by 0512 GMT, while the index for public sector lenders Nifty PSU Bank index dropped as much as 1.8 per cent.
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