Overview
- PNB disclosed to the RBI a borrowing-related fraud totaling Rs 2,434 crore tied to former promoters of SREI group firms.
- The exposure comprises Rs 1,240.94 crore linked to SREI Equipment Finance and Rs 1,193.06 crore linked to SREI Infrastructure Finance.
- The bank stated it has made 100% provisions against the entire outstanding amount.
- RBI superseded the boards of the SREI entities in 2021, and the companies later went through an NCLT-led resolution that culminated in a NARCL-led takeover in 2023.
- PNB’s September-quarter filings showed provisions of Rs 643 crore and a provision coverage ratio of 96.91% including technical write-offs.