PNB reports borrowal fraud of Rs 1,203 crore by Sintex Industries

Mumbai: State-run Punjab National Bank reported borrowal fraud of Rs 1,203.26 crore in the non-performing assets (NPA) account of Sintex Industries.

Such fraud was reported at the bank’s large corporate branch at Ahmedabad, Zonal Office in Gujarat, the lender said late on Wednesday.

“A fraud of Rs 1,203.26 crore is being reported by the bank to the RBI in the accounts of the company (SIL). Bank has already made provisions amounting to Rs 215.21 crore as per prescribed prudential norms,” it said in a filing with the BSE.

Separately, earlier in the day, stressed textile firm Sintex Industries said it had defaulted on debt repayment to the tune of Rs 49.54 crore to a total of 10 investors. Of this, Rs 45.84 crore related to the principal amount, while Rs 3.70 crore pertains to interest that was due.

Sintex’s total debt stood at Rs 7,358.88 crore at the end of June.

Ahead of the announcement by PNB, the lender’s shares closed 1.72 per cent lower at Rs 28.55, while Sintex Industries dropped 4.13 per cent to Rs 2.09.