Punjab National Bank tanks 6% after reporting Rs3,688.58cr fraud in DHFL loans

The bank said in the exchange filing that it has already made provisions amounting to Rs1,246.58cr, as per prescribed prudential norms.

Jul 10, 2020 12:07 IST India Infoline News Service

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Shares of Punjab National Bank fell as much as 6% on the BSE in the morning trade. The stock came under pressure after the bank on Thursday after market hours declared its Rs3,688.58cr exposure to Dewan Housing Finance (DHFL) as a fraud.

Punjab National Bank (PNB) reported borrowal fraud of Rs3688.58cr in NPA account at its large corporate branch in Mumbai, Zonal Office.

The bank said in the exchange filing that it has already made provisions amounting to Rs1,246.58cr, as per prescribed prudential norms.

Meanwhile, in a separate announcement, the bank’s board approved raising of capital through issue of equity shares and Basel III Compliant Tier 2 Bonds by way of Private Placement, Qualified Institutions Placement (QIP), further Public Offer (FPO), Rights Issue or any other mode or through a combination thereof up to an amount of Rs10,000cr, PNB said in a stock exchange filing.

The bank will also seek shareholder’s approval for raising of equity capital for an amount up to Rs7,000cr through Qualified Institutional Placement (QIP), Further Public Offer (FPO), Rights Issue or any such other mean.

“Appropriation of accumulated losses of Rs.28707.92 Crore from the Share Premium Account of Amalgamated Bank (PNB) and seeking approval of the shareholders in the forthcoming AGM for the same,” the bank added.

Punjab National Bank is currently trading at Rs34.80, down by Rs2.3 or 6.2% from its previous closing of Rs37.10 on the BSE. The scrip opened at Rs35.85 and has touched a high and low of Rs36 and Rs34.60 respectively.

Dewan Housing Finance Corporation Ltd is currently trading at Rs15.05, down by Rs0.6 or 3.83% from its previous closing of Rs15.65 on the BSE. The scrip opened at Rs14.90 and has touched a high and low of Rs15.30 and Rs14.90 respectively.

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