Punjab National Bank shares tank over 5 pc

Shares of Punjab National Bank tumbled over 5 per cent on Friday after the company said it has reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI.

Shares of Punjab National Bank tumbled over 5 per cent on Friday after the company said it has reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI. The stock closed the day at Rs 35.05, down 5.53 per cent, on the BSE. During the day, it plunged 6.73 per cent to Rs 34.60.

On the NSE, it tanked 5.52 per cent to settle at Rs 35.05. In terms of volume, 32.20 lakh shares were traded on the BSE and 10.17 crore on the NSE.

"A fraud of Rs 3,688.58 crore is being reported by bank to the Reserve Bank of India (RBI) in the accounts of the company (DHFL)," PNB said in a stock exchange filing. The bank has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms, it added.

In November last year, the RBI had sent the troubled mortgage lender for bankruptcy proceedings, making it the first financial services player to go to the National Company Law Tribunal for a possible debt resolution..