Shares of Punjab National Bank on Monday sank over 11 per cent after the company detected a fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL). The scrip plummeted 10.95 per cent to close at Rs 72.80 on the BSE. During the day, it plunged 11.31 per cent to Rs 72.50.
PNB Saturday said Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks. "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 3,805.15 crore is being reported by bank to RBI (Reserve Bank of India).
"It has been observed that the company 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 and the bank expects good recovery in the account," Punjab National Bank (PNB) said in a regulatory filing.
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