The Karnataka Bank Limited — Important, 17-02-2025: Updates

The Bank has identified deficiencies in its reconciliation process related to suspicious UPI Global transactions, specifically concerning the reversal of cross-border UPI transaction amounts to customers. The estimated impact on the Bank stands at approximately Rs. 18.87 crore, with a net loss of about Rs. 18.57 crore after immediate recovery efforts. Importantly, there is no impact on the Bank's operations or customer servicing. The Bank has reported this process issue to the Reserve Bank of India and is implementing additional controls to prevent recurrence while also pursuing recovery of the funds involved. Shareholders should monitor the situation as the Bank addresses these discrepancies.