Punjab National Bank (PNB) has reported a fraud of Rs 3,688.58 crore in the non-performing asset (NPA) account of non-banking financial company Dewan Housing Finance (DHFL) which is in bankruptcy proceedings. DHFL had accumulated total debts of almost Rs 1 lakh crore and failed to honour dues to its creditors. The fraud in NPA account of DHFL at a large corporate branch in Mumbai was reported to the Reserve Bank of India (RBI).
According to RBI rules, once an account is declared a fraud, banks need to set aside 100% of the outstanding loans as provisions either in one go or over four quarters. The bank has already made provisions amounting to Rs 1,246.58 crore as per prescribed prudential norms.
PNB is one of the oldest banks in India having a virtual presence in every important center of the country. The Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking, industrial finance, agricultural finance and international finance.
