Bengaluru: Karnataka government superseded the Shri Guru Raghavendra Sahakara bank, in the city after initial police and RBI investigations confirmed that huge amount has been misappropriated.

It can be recalled that the RBI imposed restrictions on the bank’s transactions in January after it found dispcrepensies in the bank accounts.

According to the sources, as per the findings, the bank has a whooping Non Performing Assets (NPA) of over Rs 700 crores.

“Most of the borrowers have given fake guarantee which resulted in a huge NPA,” added sources. However bank authorities are yet to respond.

The state government superceded the bank management with the assurance of protecting the interests of the bank depositors.