Fraudulent Storm: Gupta Power Infrastructure Involved in Multi-Crore Loan Scam at PNB

Punjab National Bank (PNB) reported a fraud involving Rs 270.57 crore linked to Gupta Power Infrastructure Ltd in Odisha. Despite registering the fraud as a non-performing asset, PNB's financial performance improved significantly with a net profit increase in the December quarter and a healthier asset quality noted.

Punjab National Bank (PNB) has uncovered a fraud amounting to Rs 270.57 crore, linked to Odisha's Gupta Power Infrastructure Ltd, and reported it to the Reserve Bank of India (RBI). This breach has been classified as a non-performing asset in PNB’s Station Square branch in Bhubaneswar.

Despite the financial setback from the fraudulent account, PNB reported a significant surge in its net profit for the December quarter, reaching Rs 4,508 crore compared to Rs 2,223 crore in the previous year. The bank's total income also experienced an uptick, growing to Rs 34,752 crore over the same period.

Additionally, PNB's asset quality saw marked improvement, with the gross non-performing assets ratio dropping to 4.09 percent from 6.24 percent the previous year, indicating the bank's resilience in maintaining financial stability amidst challenges.