Punjab and Sind Bank declares DHFL loan account as fraud

Punjab & Sind Bank slipped 0.38% to Rs 13.25 after the public sector lender on Wednesday said it has declared its exposure of Rs 815.44 crore to Dewan Housing Finance Corporation (DHFL) as fraud.

Punjab and Sind Bank informed that a non-performing asset (NPA) account, viz. DHFL with outstanding dues of Rs 815.44 crore has been declared as fraud and reported to the Reserve bank of India (RBI) as per regulatory requirement. Further, bank has already made provision of Rs 203.86 crore as per the prescribed prudential norms.

On a standalone basis, Punjab & Sind Bank reported a net loss of Rs 116.89 crore in Q1 June 2020 as compared to a net loss of Rs 30.28 crore in Q1 June 2019. Total income declined 12.7% to Rs 1,954.39 crore in Q1 June 2020 over Q1 June 2019.

Punjab & Sind Bank's business segments include treasury operations, corporate/wholesale banking, retail banking and other banking operations. The bank offers international banking and domestic banking services. Its international banking services include non-resident indian (NRI) services, export/import services, foreign exchange (forex) treasury and gold card schemes, among others.

As of 30 June 2020, the Government of India held 83.06% stake in the bank.

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