Punjab National Bank has reported a borrower fraud of Rs.3805.15 crore in the NPA account of M/s Bhushan Power & Steel Ltd. (BPSL). This fraud, the bank said, involved a domestic exposure of Rs.3191.5 crore at the Chandigarh corporate branch, and overseas exposure of USD 49.7 million (Approx. Rs.345.7 crore) at its Dubai branch and USD 38.5 million (approx. Rs.270 crore) at Hong Kong.
The bank had made provisions of Rs.1932.47 crore, not sufficient to meet the size of this NPA. BPSL has according to the bank, misappropriated bank funds, and manipulated books of accounts to raise funds from consortium lender banks.