PNB Hit By Another Fraud, Discloses To NSEI That It was Defrauded Over ₹3,800 cr By Bhushan Power & Steel 

Punjab National Bank(PNB) has informed the National Stock Exchange of India Limited (NSEI) OF A ₹3,800 crore loan fraud by Bhushan Power & Steel, involving the lender’s Chandigarh, Dubai and Hong Kong branches.

The bank disclosed to the exchange that a forensic audit revealed diversion of funds and manipulation of books of accounts by the Bhushan Power & Steel and its Directors, alleging diversion of funds from banking system.

“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. 3805.15 core is being reported by Bank to RBI. In the accounts of the company (BPSL), Bank has already made provisions amounting to Rs.1932.47 crore, as per prescribed prudential norms.“as per PNB's stock exchange notice.

PNB said that Bhushan Power & Steel 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 PNB expects good recovery in the account, the noticed added.

Bhushan Power & Steel is insolvent and is being acquired by JSW Steel at a 60% haircut to lenders. PNB was previously in the eye of a storm ever since it reported the ₹12,600-crore Nirav Modi scam last year.