PNB declares Rs 3,689 crore DHFL loans as fraud
- The bank had already made provisions of 12.5 billion rupees
- This is the fourth scandal reported by PNB in the last three years
- PNB is the country’s third-largest public sector bank
India’s second-largest state-run lender Punjab National bank reported yet another loan fraud of Rs 36.9 billion, on Thursday. The loan is in the account of debt-laden Dewan Housing Finance Corporation, the bank confirmed in an exchange filing. The bank had already made provisions of 12.5 billion rupees.
“Bank has already made provisions amounting to 12.5 billion rupees as per prescribed prudential norms,” read the filing. PNB is the country’s third-largest public sector bank.
This is the fourth scandal reported by PNB in the last three years. The bank was also involved in a Rs 11,300-crore fraud pertaining to billionaire jeweller Nirav Modi in 2018.
Dewan Housing had also been under the scanner after being seized by regulators in November. One of the top defaulters of the country, the company owed Rs.1 trillion to its debtors. Banks including State Bank of India and Union Bank had also reported the DHFL accounts as fraudulent.
Meanwhile, SS Mallikarjuna Rao, Managing Director of PNB said that the bank will implement prudential measures to avoid potential fraud.
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