PNB declares exposure to DHFL as fraud in acquisition

India’s second largest lender, Punjab National Bank in an exchange filing terms loan given to Mumbai based DHFL as fraud. of Rs. 3,688.58 crore.

PNB declares exposure to DHFL as fraud in acquisition. India’s second-largest public sector bank Punjab National Bank (PNB). Furthermore, after SBI on Thursday declared its ₹3,688.58 Crores exposure. To mortgage financier Dewan Housing Finance Ltd (DHFL) as a fraud.

“A fraud of Rs 3688.58 Crores in the NPA account of Dewan Housing Finance (DHFL). Which is at Large Corporate Branch at Mumbai, Zonal Office, Mumbai. A fraud of Rs 3688.58 crore is being reported by the bank to RBI. In the accounts of the company (DHFL)”. It said in an exchange filing. Bank has already made provisions amounting to ₹1,246.58 crore, as per prescribed prudential norms.

Once an account is declared fraud, banks need to set aside 100% of the outstanding loans as provisions, either in one go or over four quarters, according to RBI rules.

Earlier this year, the National Financial Reporting Authority (NFRA) had started an audit. But of DHFL accounts and has reached out to its administrator for documents pertaining to the company’s statutory audit for 2017-18. However, On 12 February, the report was presented to the administrator, who believes certain transactions were related to undervalued transactions, extortionate (on unfair terms) transactions and fraudulent trading, under the Insolvency and Bankruptcy Code (IBC).

Also, On 20 November, the RBI had superseded DHFL’s board. And later referred the mortgage lender to the National Company Law Tribunal (NCLT).

On July 10 9:31 am, the bank’s stock was trading at Rs 35.45, down Rs 1.65, or 4.45 percent. The 52-week high is Rs. 76.15.


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