PNB reports borrowal fraud of Rs 2060 crore in NPA account of IL&FS Tamil Nadu Power Co.
Mumbai, March 15, 2022
Punjab National Bank, the second largest public sector bank in India, today reported a borrowal fraud of Rs 2060.14 crore in the NPA acccount of IL&FS Tamil Nadu Power Company Limited.
In a disclosure to the stock exchanges, the bank said the account was at its Extra Large Corporate Branch at the Delhi Zonal Office in the national capital.
The disclosure has been made in compliance Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
It said a fraud of Rs 2060.14 crore is being reported by the ban to RBI in the accounts of the company. It also said the bank had already made provisions amounting to Rs 824.06 crore.
"Pursuant to the applicable provisions of SEBI (LODR) Regulations and the bank's Policy to Determine Materiality of Events to be reported to the Stock Exchanges, we inform as under:
"Reporting of Borrowal Fraud of Rs.2060.14 crore in NPA account of M/s IL&FS Tamil Nadu Power Co. Ltd. at Extra Large Corporate Branch at Delhi, Zonal Office: Delhi.
"A fraud of Rs. 2060.14 crore is being reported by bank to RBI in the accounts of the company. Bank has already made provisions amounting to Rs. 824.06 crore, as per prescribed prudential norms," the filing said.
IL&FS Tamil Nadu Power is a special purpose vehicle set up by Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform for implementation of thermal power projects at Cuddalore in Tamil Nadu.
Earlier, the Punjab & Sind Bank (PSB) had said on February 15 that it had declared IL&FS Tamil Nadu Power as bad asset with dues of over Rs 148 crore, and reported it to the Reserve Bank of India.
As per the bank's policy on determination and disclosures on material events, PSB said it has declared this non-performing account (NPA) as a fraud account.
"It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the lender had said in a regulatory filing.