Punjab & Sind Bank reports fraud of Rs 133 cr in three NPA accounts

The state-run bank said it declared three nonperforming asset (NPA) accounts worth Rs 133.46 crore as fraud.

The bank has reported the fraud to the Reserve Bank of India. The bank said it has already provided 100% provisioning as per the prescribed prudential norms.

Among the defaulters, Alpine Realtech had outstanding balance of Rs 64.79 crore, Sterling Motor Company had outstanding balance of Rs 36 crore and Automobile Sterling Motor Co. had outstanding balance of Rs 32.67 crore. The announcement was made post trading hours yesterday, 13 October 2020.

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

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.

Shares of Punjab & Sind Bank fell 0.75% to Rs 10.58 on BSE. The scrip has jumped 15% from its 52-week low of Rs 9.20 hit on 23 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 34.705. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at 32.12 and its 200-day moving average (DMA) placed at 38.65.

Powered by Capital Market - Live News