Shares of Punjab National BankNSE -9.23 % (PNB) tanked over 6 per cent in early trade on Monday after the public sector lender on Saturday said it has detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel (BPSL) and has reported it to the Reserve Bank of India (RBI).
The scrip was trading 6.36 per cent down at Rs 76.55, while the benchmark BSE Sensex was down 341 points, or 0.86 per cent, at 39,172 at around 9.20 am.
PNB said Bhushan Power & Steel misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks.
The lender added that it has already made provisions amounting to Rs 1,932.47 crore, as per prescribed prudential norms, for the BPSL account.
“It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account," PNB added.
PNB said its domestic exposure to Bhushan Power & Steel Ltd (BPSL) stood at Rs 3,191.51 crore and overseas exposure of $49.71 million (around Rs 345.74 crore) at Dubai branch and $38.51 million (around Rs 267.90 crore) at Hong Kong branch.
The state-run bank has reported a new fraud at a time when it is recovering from a major financial embezzlement of around USD 2 billion (around Rs 13,000 crore) by diamond merchant Nirav Modi that was reported in February 2018. Modi allegedly acqu ..
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