Shares of the government-owned lender Punjab National Bank (PNB shares) fell as much as 11.31 per cent, from its previous close, to intraday low of Rs 72.50 on the BSE after the bank informed stock exchanges on Saturday that it had detected frauds at its various bank branches amounting to Rs 3,805 crore in the non-performing asset (NPA) account of Bhushan Power & Steel Ltd. On the National Stock Exchange, PNB shares dropped as much as 11.49 per cent to Rs 72.40.
Punjab National Bank had a domestic exposure of Rs 3,191.51 crore at large corporate branch at Chandigarh, zonal office Chandigarh, overseas exposure of $49.71 million (Rs 345.74 crore)at Dubai branch and Rs $38.51 million (Rs 267.90 crore) at Hong Kong branch, PNB said in an exchange filing.
"On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the Company and its Directors, alleging diversion of funds from banking system, a fraud of Rs. 3805.15 core is being reported by Bank to RBI. In the accounts of the company (BPSL), Bank has already made provisions amounting to Rs.1932.47 crore, as per prescribed prudential norms," according to Punjab National Bank's exchange filing.
"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 which is in advance stage and the Bank expects good recovery in the account," PNB's filing added.
PNB shares ended 10.95 per cent lower at Rs 72.80, underperforming the Sensex which fell 2.01 per cent.
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