“The bank reporting of borrowal fraud of Rs 1203.26 crore in non-performing asset (NPA) account of Sintex Industries Ltd. (SIL) at large corporate branch at Ahmedabad, Zonal Office, Ahmedabad,” PNB said in a exchange filing. A fraud of Rs 1203.26 crore is being reported by Bank to Reserve Bank of India (RBI) in the accounts of the Company (SIL). The Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms, it said.
However, PNB would provide for 100 per cent of exposure in the upcoming quarters. Meanwhile, there were also reports suggesting that the RBI has learnt to have told PNB to get ready to take-over Lakshmi Vilas Bank. PNB, however, clarified on Wednesday that it has not received any such instruction from the central bank. READ CLARIFICATION HERE
In the past three months, of PNB has underperformed the market by falling 23 per cent, as compared to 9 per cent rise in the S&P BSE Sensex. At 11:37 am; it was down 1 per cent at Rs 28.25, against 1.6 per cent gain in the benchmark index. A combined around 24 million equity shares were changing hands on the counter on the NSE and BSE.
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