State-owned lender Punjab National Bank (PNB) on Friday said it has reported a borrowal fraud of Rs 2,433.99 crore to the Reserve Bank of India involving the erstwhile promoters of SREI Equipment Finance and SREI Infrastructure Finance.
In a regulatory filing to the stock exchanges, the New Delhi-headquartered lender said that of the total amount, Rs 1,240.94 crore relates to SREI Equipment Finance while the remaining Rs 1,193.06 crore relates to SREI Infrastructure Finance.
Financial Safeguards
The lender clarified that since it has already provided to the extent of 100% for the entire amount outstanding there would be no additional impact on its financials.
Resolution Status
The bank also clarified that a resolution has been arrived at for both the entities under the Corporate Insolvency Resolution Process (CIRP) and that this had been approved by the National Company Law Tribunal. The cases had been referred for insolvency in October 2021. This was after the Reserve Bank of India stepped in and superseded the boards of the companies amid concerns over governance and mounting repayment failures involving dues of nearly Rs 28,000 crore.