PNB is back in the eye of the storm. It is yet to recover any money from the Nirav Modi scam yet and now we have Bhushan Power & Steel.
It yesterday announced that it has detected ‘borrowal’ fraud to the tune of Rs.3805 crore in the NPA account of Bhushan Power & Steel Ltd. (BPSL). This includes domestic exposure of Rs.3191.51 crore at Large Corporate branch at Chandigarh, Zonal Office, Chandigarh and overseas exposure of $ 49.71 million (approx. Rs.3456 crore) at Dubai branch and $ 38.51 million (approx. Rs.268 crore) at Hong Kong.
PNB said that it has already made provisions amounting to Rs.1932.47 crore, as per prescribed prudential norms.
It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account.
The stock is obviously among the top three losers on the BSE currently, going down over 7.5% to Rs.75.10 and continues to remain at the same levels currently. Its 10% LC for today is at Rs.73.60.