PNB Hit With Rs 1200 Cr Fraud By Sintex; Shares Crash To 52-Week Low
PSU bank Punjab National Bank has reported a massive fraud of Rs 1200 crore, done by well known consumer brand: Sintex.
It has been described as a ‘borrowing fraud’.
As a direct result, share prices of PNB have crashed to a 52-week low.
Will PNB recover?
PNB Hit With Rs 1200 Crore Fraud By Sintex
In a regulatory filing, PNB has informed SEBI that they have discovered a borrowing fraud to the tune of Rs 1200 crore by Sintex.
Sintex has been in trouble since last few months, and last December, the lenders had rejected their debt-restructuring plan.
PNB as informed SEBI that they have made a provision of Rs 215 crore, as required by law, after they found out the fraud at their Ahmedabad corporate office.
Founded in 1931, Sintex is world’s largest producer of plastic water tanks, and is known as The Bharat Vijay Mills Ltd.
Share prices of Sintex are right now trading at Rs 2, after hitting a high of Rs 112 in 2017.
In the regulatory filing, PNB said, “Reporting of borrowal fraud of ? 1203.26 crore in NPA account of M/s Sintex Industries Ltd (SIL) at Large Corporate Branch at Ahmedabad, Zonal Office, Ahmedabad,”
PNB Share Prices Crash
As a direct result of this regulatory filing about the fraud, share prices of PNB has crashed.
The share prices of PNB hit 52-month low, as investors panicked because of yet another fraud being reported by PNB.
At the time of writing, shares of PNB were trading at Rs 27.85, which is 2.45% low than yesterday, and lowest in the last 52 weeks.
This is the 3rd straight day of PNB shares falling apart.
Although PNB has assured that they will make provisions for covering 100% of the fraud, investors are skeptical.
We will keep you updated, as more details come in.