Punjab & Sind Bank declares Lanco Infratech as fraud account

Punjab & Sind Bank on Wednesday declared that Lanco Infratech's account with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to the Reserve bank of India (RBI).

The PSU bank said that the account has been fully provided for as per existing RBI norms.

Punjab & Sind Bank reported a net profit of Rs 160.79 crore in Q4 FY21 as compared to a net loss of Rs 236.30 crore posted in Q4 FY20. Total income fell 15.4% to Rs 1,940.62 crore in Q4 FY21 over Q4 FY20. The bank's capital adequacy (CRAR) increased from 12.76% in March 2020 to 17.06% in March 2021 with CET-1 at 12.05% in March 2021. The bank also improved its Provision Coverage Ratio (PCR) to 82.89% in March 2021 as compared to 66.74% as on March 2020.

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 March 2021, the Government of India held 97.07% stake while Life Insurance Corporation of India held 1.04% stake in the bank.

Shares of Punjab & Sindh Bank were down 0.5% at Rs 19.90 on BSE.

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