New Delhi: Punjab National Bank (PNB), said on Saturday, that it has detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL) and has reported it to the Reserve Bank of India (RBI).
PNB said BPSL 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,” Punjab National Bank (PNB) said in a regulatory filing.
“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,” PNB added.
PNB said the bank has already made provisions amounting to Rs 1,932.47 crore, as per prescribed under prudential norms, for the BPSL account.