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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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