Punjab & Sind Bank slips after flagging fraud in Bhushan Power account

Punjab & Sind Bank fell 3.68% to Rs 24.85 at 10:42 IST on BSE after the banks said it has reported a Rs 238 crore fraud to RBI, relating to allegations of diversion of funds by Bhushan Power & Steel.

The announcement was made after trading hours yesterday, 17 July 2019.

Meanwhile, S&P BSE Sensex was down 59.80 points or 0.15% at 39,155.84.

On BSE, 9,190 shares were traded in Punjab & Sind Bank counter, compared to a 2-week average of 7,248 shares. The share price hit an intraday high of Rs 25.05 and an intraday low of Rs 24.20. It hit a 52-week high of Rs 35.25 on 21 December 2018 and a 52-week low of Rs 23.10 on 21 June 2019.

On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against Bhushan Power & Steel (BPSL) and its directors, alleging diversion of funds from banking system, a fraud of Rs 238.30 crore is being reported by Punjab & Sind Bank to the Reserve Bank of India. In the accounts of BPSL, the bank already made provisions amounting to Rs 189.35 crore, as per prescribed prudential norms.

BPSL misappropriated bank funds, manipulated books ofaccounts to raise funds from consortium lender banks. At present, the case is at NCLT, which is,in advance stage and the bnk expects good recovery in the account.

Punjab & Sind Bank reported a net loss of Rs 58.57 crore in Q4 March 2019 on comparison to a net loss of Rs 524.62 crore in Q4 March 2018. Total income rose 8.6% to Rs 2,304.37 crore in Q4 March 2019 over Q4 March 2018.

State-run Punjab & Sind Bank is an India-based bank. The 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.

Powered by Capital Market - Live News