Friday, Apr 23, 2021 | Last Update : 11:12 AM IST

  Business   Companies  08 Jul 2019  PNB shares drop over 11 per cent after BPSL fraud case

PNB shares drop over 11 per cent after BPSL fraud case

PTI
Published : Jul 8, 2019, 12:32 pm IST
Updated : Jul 8, 2019, 12:32 pm IST

At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account.

At the NSE, shares of the public sector lender dropped 11.24 per cent to Rs 72.60.
 At the NSE, shares of the public sector lender dropped 11.24 per cent to Rs 72.60.

New Delhi: Shares of Punjab National Bank on Monday dived over 11 per cent after the company detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL).

The scrip tanked 11.19 per cent to Rs 72.60 on the BSE. At the NSE, shares of the public sector lender dropped 11.24 per cent to Rs 72.60. PNB said Saturday Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks.

 

"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 banking system, a fraud of Rs 3,805.15 crore is being reported by bank to RBI (Reserve Bank of India).

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

At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account," Punjab National Bank (PNB) said in a regulatory filing.

Tags: punjab national bank, shares, bpsl fraud, pnb
Location: India, Delhi, New Delhi