A fortnight after Punjab National Bank (PNB) reported a borrowal fraud of Rs 1,203.26 crore in the Non-Performing Assets (NPA) account of Ahmedabad-based Sintex Industries Limited, Sanjay Kumar, executive director of PNB, on Tuesday said that preliminary investigations do not point to collusion of bank employees in the fraud.
“Our preliminary investigations does not reveal the involvement of any staff members. Detailed investigations happen when some process lapses are observed. Preliminary investigations does not reveal any such lapses,” Kumar, who was on a visit to Ahmedabad, told media persons.
Talking about the fraud involving Sintex Industries, the PNB official said, “It has been tagged as fraud based on RBI guidelines. The declaration of fraud is structured. Based on forensic audit reports, if the banks find some diversions have taken place and if it corroborated by the forensic audit, banks have to declare that account as fraud.”
On September 30, PNB in a statement to the BSE, reported a “borrowal fraud of Rs 1,203.26 crore in NPA account of M/s Sintex Industries Limited (SIL) at large corporate branch and the Ahmedabad Zonal Office”. The PNB officials said that the “fraud” tag will remain on Sintex, irrespective of the steps it is taking.
When asked about the number of cases awaiting resolution in the NCLT (National Company Law Tribunal), Kumar said, “Out of our total NPA portfolio, roughly 70 per cent is in NCLT.” When asked about the haircut PNB has to take, the official said that the recovery rate is close to 45-50 per cent.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines