New Delhi: Punjab National Bank (PNB) has reported a fresh loan fraud of Rs.2,434 crore involving the former promoters of SREI Group, marking the second major fraud after Nirav Modi defrauded the bank of almost ₹12,000 crore in 2018. The bank has provisioned for the entire outstanding amount, even as both companies are now resolved under the Insolvency Code.
In an exchange filing, PNB said that it has provisioned ₹1,240.94 crore lent to SREI Equipment Finance (SEFL) and another ₹1,193.06 crore to SREI Infrastructure Finance (SIFL). This development comes four years after the RBI ordered insolvency proceedings against the erstwhile promoters of these entities, which were NBFCs lending to infrastructure projects.
The companies earlier controlled by Kolkata-based Kanorias went through resolution under the Insolvency and Bankruptcy Code, with the National Asset Reconstruction Company acquiring them in 2023. The RBI had superseded both the companies’ boards in October 2021, as both the companies were struggling with a debt amounting to ₹32,700 crore.
Following PNB’s declaration, other lenders too are expected to declare the losses suffered from these promoters. Investigative agencies like the Central Bureau of Investigation (CBI) are expected to probe the promoters, as it did earlier with other insolvency cases.
Punjab National Bank’s shares closed at ₹120.25 on the NSE following the news.
