India, Aug. 25 -- Following the State Bank of India, Bank of India has also classified Reliance Communications' loan account as fraudulent and named its former director, Anil Ambani, citing alleged fund diversion in 2016, according to a regulatory filing.
Bank of India had sanctioned a ?700 crore loan in August 2016 for Reliance Communications' capital and operational expenses, as well as repayment of existing liabilities. However, half of the disbursed amount in October 2016 was placed in a fixed deposit, violating the sanction terms, the bank noted in its letter disclosed by RCom to the stock exchange.
RCom confirmed that on August 22 it received a communication from Bank of India dated August 8, notifying its decision to classify the l...