Punjab National Bank has reported a borrowal fraud of Rs 2,434 by former promoters of two companies of the SREI Group. In an exchange filing, the public sector bank disclosed a borrowal fraud of Rs 1,240.94 crore by SREI Equipment Finance Ltd and another borrowal fraud of Rs 1,193.06 crore by SREI Infrastructure Finance Ltd.
In the exchange filing, Punjab National Bank stated that it has reported borrowal fraud to RBI against the former promoters of the companies. The bank added that it has made provision for 100% of the outstanding amount.
The bank added that the concerned companies were successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by NCLT.
SREI-PNB connection
Just to remind our readers, NARCL or the National Asset Reconstruction Company had acquired the two SREI Group companies – SREI Infra and SREI Equipment Finance under the Bankruptcy code. NARCL had won the bid for it in August 2023 and the transaction was finalised in December 2023. Punjab National Bank is a key stakeholder in SREI Infrastructure Finance. As per data available, it holds 2.27% in SREI Infra. The biggest shareholders in SREI include the India Debt Resolution Company with 24% stake and National Asset Reconstruction Company holds 46% stake in the company.
Punjab National Bank Q2FY26
A look at Punjab National Bank’s Q2 performance. The bank reported a 14% jump in YoY net profit to Rs 4,904 crore in Q2FY26 Vs Rs 4,303 crore in Q2FY25. The return on assets (RoA) improved to 1.05% in Q2 FY26 from 1.02% in Q2 FY25. On to the bank’s Net Interest Income (NII) – it increased to Rs 21,047 crore in HY1FY26 from Rs 20,993 crore in
HY1FY25. This indicates an improvement of 0.26% on YoY basis.
PNB share price
The PNB share price closed Friday’s trade in the red. The shares have delivered 17% return so far in 2025 and gained 13% in the last 6 months.