PNB shares plunge over 11% after detection of Rs 3,800-cr bank fund misappropriation by Bhushan Power & Steel

New Delhi: Shares of Punjab National Bank (PNB) on Monday dived over 11 percent after the detection of fraud of more than Rs 3,800 crore by Bhushan Power & Steel Ltd (BPSL).

The scrip tanked 11.19 percent to Rs 72.60 on the BSE.

 PNB shares plunge over 11% after detection of Rs 3,800-cr bank fund misappropriation by Bhushan Power & Steel

Punjab National Bank. Reuters image.

At the NSE, shares of the public sector lender dropped 11.24 percent to Rs 72.60.

PNB said on Saturday that Bhushan Power & Steel Ltd misappropriated bank funds and manipulated its books of accounts to raise funds from consortium lender banks.

"On the basis of forensic audit, investigation findings and Central Bureau of Investigation (CBI) filing FIR, on suo moto basis, against the company and its directors, alleging diversion of funds from the banking system, a fraud of Rs 3,805.15 crore is being reported by bank to RBI (Reserve Bank of India)," PNB said in a regulatory filing

"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 National Company Law Tribunal (NCLT) which is in advance stage and the bank expects a good recovery in the account," PNB said in the regulatory filing.

Updated Date: Jul 08, 2019 14:18:27 IST