NEW DELHI: Public sector bank Punjab National Bank (PNB) has reported a loan fraud of Rs 2,060.14 crore by IL&FS Tamil Nadu Power. In an exchange filing on Tuesday, the bank said: “A fraud of Rs 2,060.14 crore is being reported by the bank to the RBI in the accounts of the company.”
The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms.
IL&FS Tamil Nadu Power is a special purpose vehicle set up by Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform for the implementation of the thermal power projects at Cuddalore in the state of Tamil Nadu.
The same account has been declared as fraud by another public sector bank – Punjab & Sind Bank – over outstanding dues of Rs 148 crore. As per the bank’s policy on determination and disclosures on material events, PNB said it has declared this non-performing account (NPA) as a fraud account.
The company had a payment due of Rs 7,181 crore at the end of March 31, 2021, according to its annual report. The public sector lender has said that it has declared this non-performing account (NPA) as a fraud account as per its on determination and disclosures on material events.