Events and Updates

Title: Punjab & Sind Bank drops 6% after reporting Bhushan Power & Steel fraud

Posted on: 19th July 2019

At present, Bhushan Power case is at NCLT which is in advance stage and the bank expects good recovery in the account.

Punjab & Sind Bank shares fell 6 percent intraday on July 18 after reporting fraud by Bhushan Power & Steel to Reserve Bank of India.

"On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against Bhushan Power & Steel and its directors, alleging diversion of funds from the banking system, a fraud of Rs 238.30 crore is being reported by the bank to RBI," the lender said in its BSE filing.

In the accounts of the company (BPSL), Bank has already made provisions amounting to Rs 189.35 crore, as per prescribed prudential norms, it added.

Punjab & Sind Bank further said 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 a good recovery in the account.

Earlier this month, Punjab National Bank and Allahabad Bank had also reported fraud of Rs 3,800 crore and Rs 1,775 crore, respectively.

The stock was quoting at Rs 24.85, down Rs 0.95, or 3.68 percent on the BSE at 1042 hours IST.