Public-sector Indian Bank on Wednesday said it has declared its Saravana Stores account with Rs 230.74 crore outstanding loan as fraud and has reported it to the Reserve Bank of India (RBI).

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The nature of the fraud is in the form of diversion of funds, said the lender, adding the outstanding balance on Saravana stood at Rs 230.74 crore.

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and having regard to the Bank's policy on determination and disclosures of material events/information, we have to inform you that non-performing account as detailed below have been declared as fraud and reported to RBI as per regulatory requirement," the bank said in a regulatory filing

Further, the Indian Bank has already made a provision of Rs 115.32 crore against the account.

Saravana Stores is a Tamil Nadu-based jewellery showroom group.

(Edited by : Jomy)