Punjab & Sind Bank declared Lanco Infratech Limited's NPA account as a fraud account, with outstanding dues of Rs 215.17 crore. According to a regulatory filing to the stock exchanges on Wednesday, June 16, Punjab & Sind Bank stated that in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the non-performing asset (NPA) account of Lanco Infratech, with outstanding dues of Rs 215.17 crore is declared as fraud and reported to the Reserve Bank of India (RBI) today.
According to the statement, the account has been fully provided for as per the existing norms set by the Reserve Bank. Lanco Infratech Limited is among the first 12 accounts that were listed by the central bank for the corporate insolvency resolution. The company owes more than Rs 44,000 crore to an IDBI Bank-led lenders' consortium.
In August 2018, Lanco Infratech was admitted for liquidation after an order by the National Company Law Tribunal (NCLT). Lanco Infratech was founded in 1986 and was one of the first independent power producers in India. In 2011, the group became the largest private power provider in the country.
On Wednesday, shares of Punjab & Sind Bank settled 0.50 per cent lower at Rs 20 apiece on the BSE. Punjab & Sind Bank opened on the BSE at Rs 20.35, inching to an intra day high of Rs 20.40 and an intra day low of Rs 19.95, in the trading session today.
Meanwhile, the public-sector lender reported a net profit of Rs 161 crore in the January-March quarter for the financial year 2020-21, compared to a net loss of Rs 236 crore in the corresponding quarter of the previous fiscal. The bank reported a net loss of Rs 2,375 crore in the October-December quarter of fiscal 2020-21.
The gross bad loans or NPAs of Punjab & Sind Bank were elevated at 13.76 per cent of the gross advances, as of March 31. In value terms, the gross NPAs of the bank stood at Rs 9,334 crore by the end of the financial year 2020-21.