Shares of Punjab National Bank rebounded after a previous dip following the disclosure of a Rs 2,434 crore loan fraud involving former promoters of SREI Equipment Finance Ltd and SREI Infrastructure Finance Ltd. Initially dropping by 3.1%, PNB’s shares later rose by 0.15% to Rs 120.55.
The state-owned bank informed the Reserve Bank of India about the fraud, accusing the ex-promoters of SEFL and SIFL of perpetrating frauds amounting to Rs 1,240.94 crore and Rs 1,193 crore, respectively. PNB disclosed that it has set aside 100% provisions against the total outstanding sum.
Srei group has contested the fraud classification based on a forensic audit report, citing ongoing legal proceedings. Other banks like Punjab & Sind Bank, Bank of Baroda, and Union Bank of India have also reported loan frauds linked to Srei companies.
