State-owned Punjab National Bank (PNB) on Friday said it has reported a borrowal fraud of Rs 2,434 crore to the Reserve Bank of India (RBI), involving the erstwhile promoters of SREI Equipment Finance (SEFL) and SREI Infrastructure Finance (SIFL).
The borrower fraud related to SEFL stood at Rs 1,240.94 crore and the PSU bank has made 100% provision for the outstanding amount, the lender said in its filing to the exchanges.
The amount for SIFL stood at Rs 1,193.06 crore and PNB has made full provision for its exposure to the company, filing said.
Both companies were successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Appellate Tribunal (NCLT).
PNB announced about the development after market hours and its shares today ended with cuts of 0.6% at Rs 120.25 on the NSE.
More to come…