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PNB share price falls 6% after lender discloses Rs 3,600 crore fraud in DHFL account

PNB share price fell up to 6.74% to Rs 34.6 against previous close of Rs 37.10 on BSE. The large cap stock has lost 6.31% in two days

twitter-logoBusinessToday.In | July 10, 2020 | Updated 13:16 IST
PNB share falls 6% after lender discloses Rs 3,600 crore fraud in DHFL account
PNB share opened with a loss of 3.37% at Rs 35.85 today

Share price of Punjab National Bank (PNB) fell over 6% today after the public sector lender said it reported loans made to Dewan Housing Finance Corporation Ltd (DHFL) worth  Rs 3,689 crore ($491 million) to RBI as "fraud." PNB had already set aside Rs 1,250 crore in provisions for loans to DHFL, which is in bankruptcy proceedings.

PNB share price fell up to 6.74% to Rs 34.6 against previous close of Rs 37.10 on BSE. The large cap stock has lost 6.31% in two days. It opened with a loss of 3.37% at Rs 35.85 today. The share trades higher than 50 day moving averages but lower than 5 day, 20 day, 100 day and 200 day moving averages.

However, PNB share has lost 52.03% during last one year and declined 45.84% since the beginning of this year. In a month, the share has gained 2.95%.

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DHFL came in the eye of the storm after a report suggested that the company, through layers of shell companies, allegedly siphoned off Rs 31,000 crore out of total bank loans of Rs 97,000 crore.

"A fraud of Rs 3,688.58 crore is being reported by Bank to RBI in the accounts of the Company (DHFL)," PNB said in a stock exchange filing.

The bank has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms, it added. In November last year, Reserve Bank sent the troubled mortgage lender DHFL for bankruptcy proceedings, making it the first financial services player to go to the NCLT for a possible debt resolution.

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