PNB Reports Rs 1,200 Crore "Borrowing Fraud" By Ahmedabad Firm

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PNB Reports Rs 1,200 Crore 'Borrowing Fraud' By Ahmedabad Firm

Punjab National Bank said it detected borrowing fraud worth Rs 1,203 crore by Sintex Industries

New Delhi:

Punjab National Bank (PNB) has reported a new borrowing fraud worth Rs 1,203 crore by the troubled Ahmedabad-based Sintex Industries Ltd, whose debt-restructuring plan was rejected by lenders in December last year.

In a regulatory filing on Wednesday, the government-owned PNB said it has made a provision of Rs 215.21 crore, which is required by law, after it detected the fraud at its corporate banking branch in Ahmedabad.

"Reporting of borrowal fraud of Rs 1203.26 crore in NPA account of M/s Sintex Industries Ltd (SIL) at Large Corporate Branch at Ahmedabad, Zonal Office, Ahmedabad," PNB said in the regulatory filing.

Sintex Industries Ltd, which makes textiles and yarn, belongs to Sintex group that makes plastic water tanks and is almost a household name in India. Sintex group is owned by Sintex Plastics Technology Ltd that demerged from Sintex Industries in 2017.

Banks in the country have been trying to recover money from delinquent borrowers amid a prolonged credit crunch, the coronavirus crisis and weakening economic growth.

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