Punjab & Sind Bank declares IL&FS account as fraud

The state-run bank informed on Thursday that the NPA account Infrastructure Leasing & Financial Services (IL&FS) with outstanding dues of Rs 399.31 crore has been declared as fraud.

The bank said it has reported it to the RBI on Thursday as per regulatory requirement. The account has been fully provided for as per existing RBI norms, the bank said.

Separately, Punjab & Sind Bank said it allotted 335,16,14,868 equity shares of Rs 10 each of the bank for cash at an issue price of Rs 16.41 per equity share to Government of India (President of India), aggregating to Rs 5,500 crore on preferential basis. With the allotment, the Government of India's shareholding has increased to 97.07% from 83.06%.

On a standalone basis, Punjab & Sind Bank reported a net loss of Rs 2,375.53 crore in Q3 December 2021 as compared with a net loss of Rs 255.49 crore in Q3 December 2020. Net sales declined 4.5% to Rs 1,982.52 crore in Q3 December 2020 over Q3 December 2019.

Shares of Punjab & Sind Bank fell 0.30% to Rs 16.45 on BSE. The PSU lender's business segments include treasury operations, corporate/wholesale banking, retail banking and other banking operations. The bank offers international banking and domestic banking services. As of 31 December 2020, the Government of India held 83.06% stake in the bank.

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