India, April 21 -- The crisis-hit New India Cooperative Bank had advanced over 2,000 loans to borrowers which were later settled for miniscule amounts, swelling its non-performing assets to around Rs.400 crore, investigators from Mumbai police's Economic Offences Wing (EOW) have found.

The bank's former general manager (accounts) Hiten Mehta and former chief executive officer Abhimanyu Bhoan are already behind bars for their role in the alleged embezzlement of Rs.122 crore from its cash reserves. Its former chairman Hiren Bhanu, also an accused in the case, has fled the country and a look out circular has been issued against him.

While probing the alleged embezzlement from the bank's cash reserves, EOW officers found that the three top ...