STOCK MARKET BSE NSE

Punjab and Sind Bank shares fall over 3 per cent after lender flags Rs 238 crore fraud

The scrip declined 3.10 per cent to close at Rs 25 on the BSE. During the day, it fell by 6.20 per cent to Rs 24.20. On the NSE, shares fell 2.71 per cent to close at Rs 25.10.

Published: 18th July 2019 04:54 PM  |   Last Updated: 18th July 2019 04:54 PM   |  A+A-

Fraud

For representational purposes

By PTI

NEW DELHI: Shares of Punjab & Sind Bank Thursday fell over 3 per cent after the lender reported over Rs 238-crore fraud by Bhushan Power and Steel (BPSL).

The scrip declined 3.10 per cent to close at Rs 25 on the BSE. During the day, it fell by 6.20 per cent to Rs 24.20. On the NSE, shares fell 2.71 per cent to close at Rs 25.10.

The state-owned bank Wednesday reported over Rs 238-crore fraud by Bhushan Power and Steel, a third such instance after similar disclosures made by PNB and Allahabad Bank recently.

"On the basis of forensic audit investigation findings and CBI filing FIR, on suo moto basis, against the company and its directors, alleging diversion of funds from the banking system, a fraud of Rs 238.

30 crore is being reported by the bank to Reserve Bank of India.

"In the accounts of the company (BPSL), the bank has already made provisions amounting to Rs 189. 35 crore, as per prudential norms," Punjab & Sind Bank said in a regulatory filing.

It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from a consortium of lender banks, it said.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp