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    Question

    A borrower has limits of ₹50 crore from Bank A and

    ₹40 crore from Bank B without consortium arrangement. The borrower diverts stock financed by Bank A to Bank B. This is primarily a case of:
    A Wilful Default Correct Answer Incorrect Answer
    B Technical Default Correct Answer Incorrect Answer
    C Evergreening Correct Answer Incorrect Answer
    D Multiple Financing Risk Correct Answer Incorrect Answer
    E Siphoning of Funds Correct Answer Incorrect Answer

    Solution

    Using same security with multiple banks without consortium = multiple financing.

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