An investigation by the inspection team of Canara Bank following a complaint forwarded by the National Housing Bank had found fake ITRs (Income tax returns) in 37 accounts in Bhilwara branch of Can Fin Homes.
In a stock exchange filing on Monday, Can Fin Homes said the borrowers are available in all the accounts, securities provided by them intact and the accounts are maintained regular.
However, submission of fake ITRs falls under the definition of ‘fraud’ and so all the 37 accounts with the aggregate loan amounts of ₹3.93 crore were classified as fraud accounts and reported to the regulator — NHB, the filing said.
“The company had classified these accounts as non-performing assets and provided fully. The company has taken necessary action in this regard,” it added.
Limited impact on operations
The fraud has no material impact on its operations given the scale of its loan book, the housing finance company said.
“The aggregate amount of fraudulent accounts is ₹3.93 crore against the loan book of ₹26,711 crore,” it said.
After including the above mentioned non-performing assets, the company’s net NPA for the year ended March 31, 2022, was 0.64 per cent.
The National Housing Bank had forwarded a complaint received by it to the Audit Committee Chairman of the Can Fin Homes.
“As a prudent practice, the Audit Committee had requested Canara Bank inspection-team to verify the operations in 21 branches,” it said.