Punjab National Bank share price tanked nearly 6 per cent on Friday afternoon after the public sector bank reported another loan fraud of to the Reserve Bank of India.
After tumbling to 6.73 per cent to Rs 34.60 on the BSE, lender’s shares were trading at Rs 35.05, down by 5.53 per cent at 1.45 pm.
Similarly, on the NSE the shares had dropped to 6.73 per cent to Rs 34.60, but at the time of reporting, they were trading down by 5.66 per cent at Rs 35.00.
In a BSE filing the bank said, “A fraud of Rs 3,688.58 crore is being reported by bank to the Reserve Bank of India (RBI) in the accounts of the company (DHFL),” adding that it has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms.
The bank is already infamous for its loan fraud by the diamond merchant Nirav Modi in 2018 in which it was hit by nearly $2 billion fraud and money laundering case.
In November last year, RBI had sent the troubled mortgage lender for bankruptcy proceedings, making it the first financial services player to go to the National Company Law Tribunal for a possible debt resolution.