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Punjab National Bank reports fraud of over Rs 2,000 crore in NPA account

Punjab National Bank reports fraud of over Rs 2,000 crore in NPA account

The fraud was reported in NPA account of IL&FS Tamil Nadu Power Co. Ltd. at Extra Large Corporate Branch at Delhi, the bank said.

A fraud of Rs 2,060.14 crore is being reported by bank to RBI in the accounts of the company, PNB said. A fraud of Rs 2,060.14 crore is being reported by bank to RBI in the accounts of the company, PNB said.

The Punjab National Bank (PNB) on Tuesday reported a borrowal fraud of Rs 2,060.14 crore in a non-performing asset (NPA) account.
 
The fraud was reported in NPA account of IL&FS Tamil Nadu Power Company Ltd. at Extra Large Corporate Branch at Delhi, the bank said in an exchange filing.
 
"A fraud of Rs 2,060.14 crore is being reported by Bank to RBI in the accounts of the company", the filing said, adding that the bank has already made provisions amounting to Rs 824.06 crore as per the prescribed prudential norms.
 
Last month, Punjab & Sind Bank had also declared IL&FS Tamil Nadu Power Company's NPA account, with dues of over Rs 148 crore, as a fraud account and reported it to the Reserve Bank of India (RBI).
 
"Bank has already made provisions amounting to Rs 59.54 crore, as per prescribed prudential norms," Punjab & Sind Bank said in an exchange filing.
 
IL&FS Tamil Nadu Power Company was set up as a special purpose vehicle (SPV) by the debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform IEDCL for implementation of thermal power projects at Cuddalore in Tamil Nadu.
 
Shares of PNB on Tuesday ended 2.17 per cent lower at Rs 36 on the BSE.

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