Punjab National Bank slips 10% on detecting fraud of Rs 3,805 crore

PNB said on Saturday that Bhushan Power & Steel Ltd had misappropriated bank funds and had manipulated its books of accounts to raise funds from consortium lender banks.

Shares of Punjab National Bank (PNB) slipped 10 per cent intra-day to quote at Rs 73 on the BSE on Monday after the state-owned bank reported a fraud of Rs 3,805 crore by Bhushan Power & Steel Ltd (BPSL).

On Saturday, the bank reported the fraud to the Reserve Bank of India (RBI) and informed that BPSL had misappropriated bank funds and had manipulated its books of accounts to raise funds from consortium of lenders.

“On the basis of the forensic audit investigation findings and CBI filing FIR, on suo moto basis, against the company and its directors, alleging diversion