On March 15, state-owned Punjab National Bank (PNB) said in a letter to BSE and NSE that it had reported a borrowing fraud of over Rs 2000 crores in the non-performing (NPA) account of IL&FS Tamil Nadu Power Co. Ltd.
The bank made the disclosure under Regulation 30 of Securities Exchange Board of India (LODR) Regulations, 2015. As per the regulations, the bank has to report such events to the stock exchanges. In the letter, the bank said, “Reporting of Borrowal Fraud of Rs.2060.14 crore in NPA account of Mis IL&FS Tamil Nadu Power Co. Ltd. at Extra Large Corporate Branch at Delhi, Zonal Office: Delhi.”
It further added, “A fraud of Rs. 2060.14 Crore is being reported by Bank to RBI in the accounts of the Company. Bank has already made provisions amounting to Rs. 824.06 Crore, as per prescribed prudential norms.”
The Nirav Modi scam case was also linked to PNB.
This is a developing story. Details awaited.
