INSUBCONTINENT EXCLUSIVE:
Shares of Allahabad Bank declined nearly 15 per cent on Monday after the lender on Saturday reported a fraud of over Rs 1,774 crore by
Bhushan Power and Steel to the Reserve Bank of India.
The scrip slipped as much as 14.52 per cent to Rs 40.30 in early trade, while
benchmark BSE Sensex was trading 174 points, or 0.45 per cent, up at 38,910.34.
The BSE Bankex index was almost flat at 34601.92 at around
9.30 am (IST).
The public sector bank in a regulatory filing said on the basis of forensic audit investigation findings and CBI filing FIR
against the company and its directors, alleging diversion of funds from banking system by Bhushan Power and Steel (BPSL), a fraud of Rs
1,774.82 crore has been reported by the bank to the Reserve Bank.
The bank also said that it has been observed that the company has
misappropriated bank funds, and manipulated books of accounts to raise funds from consortium lender banks
Allahabad Bank has already made provisions amounting to Rs 900.20 crore against exposure of the bank in BPSL, it said.
Last week, Punjab
National Bank (PNB) also reported a fraud worth Rs 3,805.15 crore by the bankrupt steel company BPSL by misappropriating bank funds and
manipulating its books of accounts
Shares of PNB were trading 0.66 per cent down at Rs 74.85 at around the same time.