PNB reports ₹2,434 crore borrowal fraud to RBI linked to former SREI promoters

State-owned Punjab Bank (PNB) on Friday said it has reported a borrowal fraud amounting to ₹2,434 crore to the Reserve Bank of India, involving the erstwhile promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL).

In an exchange filing, the lender said the fraud related to SREI Equipment Finance stood at ₹1,240.94 crore. PNB has made 100% provision for the entire outstanding amount in this account.

The borrowal fraud linked to SREI Infrastructure Finance amounted to ₹1,193.06 crore, for which the bank has also made full provisions, according to the filing.

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PNB added that both SEFL and SIFL have been successfully resolved under the Corporate Insolvency Resolution Process by the Company Law Tribunal. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Shares of Punjab Bank ended lower by 0.56% at ₹120.25 on the NSE on Friday.

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