PNB reports Rs 2,434 cr loan fraud against erstwhile promoters of Srei Group to RBI

New Delhi: State-owned Punjab National Bank on Friday reported a loan fraud of Rs 2,434 crore committed by former promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL) to the banking sector regulator, the Reserve Bank. These two entities with financial debt amounting to Rs 32,700 crore went through resolution under the Insolvency and Bankruptcy Code and the new promoter National Asset Reconstruction Company Ltd (NARCL) acquired them in December 2023. The bank has reported a case of borrowing fraud to the RBI against the erstwhile promoters of SEFL and SIFL, amounting to Rs 1,240.94 crore and Rs 1,193.06 crore, respectively, PNB said in a regulatory filing. The bank has already made 100 per cent provisions against the entire outstanding amount, it said.