Punjab National Bank share price slipped over 5% in trade today after the bank was hit with yet another fraud worth Rs 3,805.15 crore by Bhushan Power & Steel Ltd (BPSL), just over a year after a major fraud worth Rs 13,700 crore involving diamantaire Nirav Modi.
The bank fraud includes domestic exposure of Rs 3,191.51 crore at the PNB's Chandigarh branch, overseas exposure of Rs 345.74 crore at its Dubai branch and Rs 267.9-crore exposure at its Hong Kong branch.
Following the news, PNB share price opened at a loss of 6.67% to its intraday low of Rs 76.30. Later, the stock made a fresh low by falling 8.13% to Rs 75.10.
The stock has fallen 6.95% in the last 2 days and moved below its 30 day, 150 day and 200 day simple moving averages today.
A total of 11.9 lakh shares and 216.4 lakh shares changed hands on BSE and NSE, respectively.
The bank said Bhushan Power & Steel "misappropriated bank funds", "manipulated books of accounts" to raise funds from a consortium of banks. "At present, the case is at the NCLT (National Company Law Tribunal), which is in advance stage and the bank expects a good recovery in the account," the PNB said.
The state-owned bank said that in compliance with the regulation 30 of SEBI (LODR) Regulations, 2015, it was reporting the fraud to the RBI on the basis of forensic audit investigation findings and the Central Bureau of Investigation (CBI) First Information Report (FIR), which was filed on suo-moto basis against the company and its directors. The FIR had alleged funds diversion of Rs 3,805.15 crore from the banking system.
This latest fraud comes more than a year after the Punjab National Bank reported its biggest financial embezzlement of around Rs 13,700 crore by diamond merchant Nirav Modi and his maternal uncle Mehul Choksi in February 2018.
Currently, the stock trades down by 7.46% or 6.30 points to Rs 75.45 on BSE.
Edited by Rupa Burman Roy