Punjab National Bank was down 5.57% to Rs 77.20 at 09:22 IST on the BSE after the bank reported a borrowal fraud of Rs 3805.15 crore in non-performing asset account of Bhushan Power & Steel.The announcement was made on Saturday, 6 July 2019.
Meanwhile, the S&P BSE Sensex was down by 377.61 points, or 0.96% to 39,135.78.
On the BSE, 2.08 lakh shares were traded in the counter so far compared with average daily volumes of 16.09 lakh shares in the past two weeks. The stock had hit a high of Rs 77.70 and a low of Rs 75.80 so far during the day. It hit a 52-week high of Rs 99.90 on 1 April 2019 and a 52-week low of Rs 58.65 on 28 September 2018.
Punjab National Bank (PNB) reported that the borrowal fraud includes domestic exposure of Rs 3191.51 crore at the large corporate branch at Chandigarh and overseas exposures of approx. Rs 345.74 crore at Dubai branch and approx. Rs 267.90 crore at Hong Kong.
The bank said that the fraud has been reported to the RBI on the basis of Forensic Audit Investigation findings and Central Bureau of Investigation (CBI) filing first information report (FIR), on suo moto basis, against the company and its directors, alleging diversion of funds from banking system. In the accounts of Bhushan Power & Steel (BPSL), the bank has already made provisions amounting to Rs 1932.47 crore, as per prescribed prudential norms.
Punjab National Bank observed that BPSL has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at National Company Law Tribunal (NCLT) which is in advance stage and the bank expects good recovery in the account.
PNB reported a net loss of Rs 4749.64 crore in Q4 March 2019 over a net loss of Rs 13416.91 crore in Q4 March 2018. Total income rose 13.75% to Rs 14725.13 crore during the period under review.
PNB is a public sector bank.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)