Punjab National Bank Falls 3% on reporting Rs 1,203 Crore Fraud

Punjab National Bank Falls 3% on reporting Rs 1,203 Crore Fraud

On Thursday, the public sector bank in a stock exchange reported a Borrowal Fraud of Rs 1,203.26 crore in NPA (non-performing asset) account of Sintex Industries Ltd. (SIL) at Large Corporate Branch at Ahmedabad, Zonal Office, Ahmedabad. 

"A fraud of Rs. 1203.26 Crore is being reported by Bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs. 215.21 Crore, as per prescribed prudential norms," it added. 

As per RBI norms, banks have to make up to 100 percent provision on a fraud hit account. The provision is provided for over a period of few quarters. A provision refers to the amount banks need to set aside against likely losses.