India’s 2nd 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.
- Punjab National Bank reported on Saturday about the alleged 3,800 crore fraud by Bhushan Power & Steel Ltd. to the RBI.
- 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.
- PNB claimed that the BSPL misappropriated bank funds and manipulated books to raise funds from consortium lenders.
- BPSL is one of the 12 accounts identified by the RBI for insolvency proceedings.
- Shares of Punjab National Bank crashed over 7% on Monday as the aftermath of another big scam.
- 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.