Another fraud worth ₹3,800 hits ailing Punjab National Bank

India’s 2^nd largest PSU bank Punjab National Bank is once again duped with a fraud of ₹3,800 crores by Bhushan Power & Steel Ltd.

Another year and another big scam revealed by PNB, this time Bhushan Steel & Power Ltd looted the PSU bank for ₹3,800 crores.

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• Punjab National Bank reported on Saturday about the alleged 3,800 crore fraud by Bhushan Power & Steel Ltd. to the RBI.

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• The exposure of ₹3,800 crore includes domestic exposure of₹3,191 crore, overseas exposure of $49.71 million at the bank’s Dubai branch and $38.51 million at its Hong Kong branch.

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• PNB claimed that the BSPL misappropriated bank funds and manipulated books to raise funds from consortium lenders.

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• BPSL is one of the 12 accounts identified by the RBI for insolvency proceedings.

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#SharekhanFNA #PNB has reported another fraud worth Rs ~3,805 cr by Bhushan Power & Steel Ltd, -VE read thru as even though the account was already NPA, PNB has already made ~ 50% provisions and hence is likely to provide for remaining amount in near term #Sharekhankar

— Sharekhan (@Sharekhan) July 8, 2019

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• Shares of Punjab National Bank crashed over 7% on Monday as the aftermath of another big scam.

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• This scam has further downgraded the credibility of PNB’s banking system since the state-owned bank is still recovering from the Nirav Modi scam.

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