PNB nears 52-week low on Rs 1,230 crore fraud by Sintex Industries

The Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms, the state-owned lender clarified.

Shares of Punjab National Bank (PNB) slipped 3 per cent to Rs 27.65 on the BSE in intra-day trade on Thursday in otherwise firm market, after the bank reported a fraud worth Rs 1,203 crore by Sintex Industries. The stock of state-owned lender was trading lower for the third straight day. It is close to its 52-week low price of Rs 26.30 touched on May 20, 2020. Sintex Industries, on the other hand, tanked 4.8 per cent on the BSE to Rs 1.99.

“The bank reporting of borrowal fraud of Rs 1203.26 crore in non-performing asset (NPA) account of Sintex Industries Ltd. (SIL) at large corporate branch at Ahmedabad, Zonal Office, Ahmedabad,” PNB said in a exchange filing. A fraud of Rs 1203.26 crore is being reported by Bank to Reserve Bank of India (RBI) in the accounts of the Company (SIL). The Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms, it said.

However, PNB would provide for 100 per cent of exposure in the upcoming quarters. Meanwhile, there were also reports suggesting that the RBI has learnt to have told PNB to get ready to take-over Lakshmi Vilas Bank. PNB, however, clarified on Wednesday that it has not received any such instruction from the central bank. READ CLARIFICATION HERE

In the past three months, of PNB has underperformed the market by falling 23 per cent, as compared to 9 per cent rise in the S&P BSE Sensex. At 11:37 am; it was down 1 per cent at Rs 28.25, against 1.6 per cent gain in the benchmark index. A combined around 24 million equity shares were changing hands on the counter on the NSE and BSE.