PNB reports over Rs.3,800 Cr fraud by Bhushan Power & Steel
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Punjab National Bank (PNB) on Saturday informed the exchanges about a fraud of Rs. 3,805.15 crore in NPA (non-performing asset) account of Bhushan Power & Steel Ltd. (BPSL).
This includes a domestic exposure of Rs.3191.51 crore at Large Corporate branch at Chandigarh, Zonal Office, Chandigarh; overseas exposure of $49.71 million (about Rs. 345.74 crore) at Dubai branch and $38.51 million (about Rs. 267.90 crore) at Hong Kong, the public sector bank said.
"On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo motu basis, against the company and its directors, alleging diversion of funds from banking system, a fraud of Rs. 3,805.15 core is being reported by the bank to RBI.
"In the accounts of the company (BPSL), the bank has already made provisions amounting to Rs.1,932.47 crore, as per prescribed prudential norms," as per the bank's stock exchange notice.
The bank further alleged that 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 (National Company Law Tribunal) and the bank expects good recovery in the account, the notice said. #casansaar (Source - PTI, The Hindu Business Line)
This includes a domestic exposure of Rs.3191.51 crore at Large Corporate branch at Chandigarh, Zonal Office, Chandigarh; overseas exposure of $49.71 million (about Rs. 345.74 crore) at Dubai branch and $38.51 million (about Rs. 267.90 crore) at Hong Kong, the public sector bank said.
"On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo motu basis, against the company and its directors, alleging diversion of funds from banking system, a fraud of Rs. 3,805.15 core is being reported by the bank to RBI.
"In the accounts of the company (BPSL), the bank has already made provisions amounting to Rs.1,932.47 crore, as per prescribed prudential norms," as per the bank's stock exchange notice.
The bank further alleged that 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 (National Company Law Tribunal) and the bank expects good recovery in the account, the notice said. #casansaar (Source - PTI, The Hindu Business Line)
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