Allahabad Bank has reported fraud of over Rs 1,774 crore by Bhushan Power and Steel (BPSL) to the Reserve Bank of India (RBI). The bank’s allegation are based on the forensic audit investigation findings and CBI filing FIR against the company and its directors, alleging diversion of funds from banking system by BPSL.
The Bank has further observed that the company has misappropriated bank funds, and manipulated books of accounts to raise funds from consortium lender banks. The bank has already made provisions amounting to Rs 900.20 crore against exposure of the bank in BPSL.
Allahabad Bank is a nationalised bank with its headquarters in Kolkata. It is the oldest joint stock bank in India.
