PNB shares tank 10 percent after new fraud is disclosed
Two days after a new fraud was reported in Punjab National Bank (PNB), the bank’s stock fell more than 10 percent on Monday. PNB had said two days ago that Bhushan Power and Steel Limited (BPCL) had fraudulently garnered Rs 3,805.15 crore.
PNB shares were trading at 10.43 am at 73.95 per share, after which its shares declined by 9.54 per cent to 73.15 per cent. The government bank had told the exchange on Saturday that BPCL had fraudulently garnered Rs 3,805.15 crore.
On the basis of the FIR lodged against the company and its directors, taking the cognizance of the allegations of alleged embezzlement of money from the forensic audit investigation and banking system, the bank has given information of fraud of Rs 3,805.15 crore to RBI (Reserve Bank of India). “
PNB said that in the accounts of the company (BPCL), the bank had already made provision of Rs 1,932.47 crores as per the prescribed prudential norms.
PNB told in regulatory filing on Saturday that BPLL misused the money and manipulated booklets to borrow from the lender’s group of banks. On the current situation, PNB said that the matter is in progress in the National Company Law Tribunal (NCLT).
Earlier, in February 2018, PNB was hit with one of the biggest scandals in banking history, when diamond trader Neerav Modi and Mehul Choksi had committed fraud of Rs 14,000 crore from the bank.
