Punjab and Sind Bank says defrauded of Rs 38.19 crore

Punjab and Sind Bank says defrauded of Rs 38.19 crore

Mumbai, January 24, 2020

State-run Punjab and Sind Bank on Friday said it has been defrauded of Rs 38.19 crore by Ranchi Expressway Ltd. The bank also said that it had already made provisions on this count to the tune of Rs 15.28 crore.

Last year, Punjab and Sind Bank (PSB) had reported a Rs 238 crore fraud to the Reserve Bank of India (RBI) relating to allegations of diversion of funds by Bhushan Power and Steel Ltd.

"NPA (non-performing asset or bad loan) Account, namely M/s Ranchi Expressway with outstanding dues of Rs 38.19 crore, has been declared as fraud and reported to RBI as per regulatory requirement. Bank has already made provisions amounting to Rs 15.28 crore, as per prescribed prudential norms," Punjab and Sind Bank said in a regulatory filing.

The bank's stock closed lower on Friday by 2.21 per cent at Rs 19.95 a share on the BSE.

IANS

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