Punjab National Bank (Photo | EPS) 
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Scandal-hit Punjab National Bank reports Rs 3,688 crore borrowal fraud

After alleged violations in the company came to light last year, various agencies, including SFIO, had initiated probe.

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MUMBAI: State-owned Punjab National Bank on Thursday said it has reported a fraud of Rs 3,688.58 crore in NPA account of Dewan Housing Finance Ltd (DHFL) to the RBI.

The 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.

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In November last year, the Reserve Bank had 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.

After alleged violations in the company came to light last year, various agencies, including SFIO, had initiated probe.

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