PNB reported the fraud amounting to Rs 2,434 crore to the Reserve Bank of India (RBI). The case pertains to alleged wrongful borrowings by the erstwhile promoters of SEFL and SIFL.
According to the bank’s regulatory filing, the outstanding fraud amount for SEFL stands at Rs 1,240.94 crore, while for SIFL it is Rs 1,193.06 crore. PNB clarified that it has made 100% provision for the total outstanding exposure linked to both companies.
The development was disclosed by the lender after market hours on Friday. On the same day, PNB’s stock closed 0.6% lower at Rs 120.25 apiece on the National Stock Exchange (NSE).
Both SEFL and SIFL had previously undergone resolution under the Corporate Insolvency Resolution Process (CIRP), as overseen by the National Company Law Tribunal (NCLT). These proceedings came after the Reserve Bank of India intervened in October 2021, superseding the boards of the two companies due to corporate governance concerns and repayment defaults aggregating to nearly Rs 28,000 crore.
PNB share price history
Over the past year, shares of PNB have delivered a notable return of 17.93%, reflecting a strong performance relative to the broader market. On a year-to-date (YTD) basis, the stock is up 17.19%, continuing its upward trajectory. Over the last six months, the gains stood at 13.27%, while the three-month return came in at an impressive 11.69%.
However, in the last one month, the stock saw a dip of 3.72%, marking a short-term correction amid an otherwise solid long-term uptrend.
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