Punjab National Bank reports loan frauds of Rs 2434 crores
Punjab National Bank (PNB) has reported a loan fraud of Rs 2,434 crore. The bank informed the stock exchanges about this on December 26. The bank stated that it has also informed the Reserve Bank of India (RBI) about the fraud. Two companies had taken loans from PNB but failed to repay the money.
This loan fraud case involves two companies: SREI Equipment Finance (SEFL) and SREI Infrastructure Finance (SIFL). These two companies are related. SREI Equipment Finance committed fraud worth ₹1,241 crore, while SREI Infrastructure Finance committed fraud worth ₹1,193 crore.
PNB, in a filing with the stock exchange, stated that it has made provisions for the outstanding amounts of both loans. The bank also said that SEFL and SIFL have been resolved through the Corporate Insolvency Resolution Process under the NCLT (National Company Law Tribunal).
The bank made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shares of Punjab National Bank closed 0.56 percent lower at ₹120.25 on December 26. Punjab National Bank is a government-owned bank and one of the largest public sector banks in the country.
