PNB Reports Rs 270.57 Crore Loan Fraud by Odisha-based Gupta Power Infrastructure
The bank has already made provisions totaling Rs 270.57 crore under the established prudential standards.
PNB Reports Rs 270.57 Crore Loan Fraud by Odisha based Gupta Power Infrastructure
On Tuesday, Punjab National Bank, a public sector lender, disclosed a fraud of Rs 270.57 crore to the Reserve Bank. The fraud was perpetrated by Gupta Power Infrastructure Ltd, an organization based in Odisha.
In a regulatory filing, PNB disclosed that borrowing fraud totaling Rs 270.57 crore has been reported to the Reserve Bank of India (RBI) in the non-performing asset (NPA) account of Gupta Power Infrastructure Ltd. Station Square branch of the bank in Bhubaneswar granted the loan, according to the statement.
The bank has already made provisions totaling Rs 270.57 crore under the established prudential standards. PNB's net profit increased by over twofold to Rs 4,508 crore in the December quarter, compared to Rs 2,223 crore in the same quarter a year ago.
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The company's total income increased to Rs 34,752 crore from Rs 29,962 crore in the same period a year ago, PNB said in a regulatory filing. Interest income also rose to Rs 31,340 crore from Rs 27,288 crore in the same quarter a year ago. On the asset quality front, the bank's gross non-performing assets ratio moderated to 4.09 percent from 6.24 percent a year ago.
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