PNB drops on reporting Rs 3,688 cr borrowal fraud by DHFL

Punjab National Bank (PNB) lost 5.39% to Rs 35.10 after the bank reported a loan of Rs 3,688.58 crore granted to Dewan Housing Finance (DHFL) as fraud.

State-run PNB on Thursday reported a borrowal fraud of Rs 3,688.58 crore in the NPA account of the now bankrupt Dewan Housing Finance (DHFL). In a regulatory filing, the bank said that it has already made provisions amounting to Rs 1,246.58 crore.

Shares of DHFL were locked in a 5% lower circuit at Rs 14.9 on BSE.

Meanwhile, PNB on Thursday said its board has approved a proposal to raise Rs 10,000 crore through a mix of both equity and debt. The board also approved the bank to seek shareholders' nod for raising of equity capital for an amount up to Rs 7,000 crore in the forthcoming annual general meeting.

Besides, the board has cleared opening balance sheet of the amalgamated bank as on 1 April 2020, which is post amalgamation of Oriental Bank of Commerce and United Bank of India into PNB, the bank said in a regulatory filing.

State-run PNB amalgamated Oriental Bank of Commerce and United Bank of India with itself effective April 1 this year. Government of India held 83.19% stake in PNB as on 31 March 2020.

PNB reported a net loss of Rs 697.20 crore in Q4 March 2020, lower than net loss of Rs 4749.64 crore in Q4 March 2019. Total income rose 11.29% to Rs 16,388.32 crore.

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