PNB Hit By Another Scam, Reports Borrowing Fraud Of Over Rs 2,000 Cr In IL&FS TN Power Company Accounts
This comes after The bank reportedly said that it has already made provisions up to Rs 824.06 Crore, as per norms
New Delhi: Punjab National Bank (PNB) has reported a borrowing fraud of Rs 2,060.14 crore in a non-performing account (NPA) of IL&FS Tamil Nadu Power Co. Ltd. The bank has reported the fraud to RBI in the accounts of the company.
"A fraud of Rs 2,060.14 crore is being reported by the bank to the RBI in the accounts of the company," PNB said in a filing, as quoted by news18. This comes after The bank reportedly said that it has already made provisions up to Rs 824.06 Crore, as per norms.
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A month ago, IL&FS Tamil Nadu Power Company was declared a bad asset -- with dues of over Rs 148 crore -- by another public sector lender Punjab & Sind Bank (PSB).
On determination and disclosures of material events as per the bank's policy, PSB declared the NPA as a fraud account. "It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement," the bank had said in a regulatory filing, as quoted by news18.
According to the company's annual report, at the end of March 31, 2021, it had a payment due of Rs 7,181 crore, Economic Times reported. Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform has set up a special purpose vehicle for the implementation of thermal power projects at Cuddalore in Tamil Nadu.
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The lending banks shall classify such accounts as special mention accounts (SMA), as per the RBI guidelines.
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