Punjab National Bank (PNB) has reported another big fraud worth Rs 3800 crore. The public sector bank said in a statement to stock exchanges that it had reported a borrowing fraud of Rs 3805 crore in Bhushan Power and Steel Ltd's account to the Reserve Bank of India (RBI). PNB said that the fraud, "alleging diversion of funds from the banking system" was being reported to the RBI on the basis of the findings of forensic audit and the federal police filing a first information report. 

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Full PNB statement

"Reporting of Borrowal Fraud of Rs.3805.15 crore in NPA account of M/s Bhushan Power & Steel Ltd. (BPSL) {including domestic exposure of Rs.3191.51 crore at Large Corporate branch at Chandigarh, Zonal Office, Chandigarh, overseas exposure of USD 49.71 mio (Approx. Rs.345.74 crore) at Dubai branch and USD 38.51 mio (approx. Rs.267.90 crore) at Hong Kong) 

On the basis of Forensic Audit Investigation findings and CBI filing FIR, on suo moto basis, against the Company and its Directors, alleging diversion of funds from banking system, a fraud of Rs. 3805.15 core is being reported by Bank to RBI. In the accounts of the company (BPSL), Bank has already made provisions amounting to Rs.1932.47 crore, as per prescribed prudential norms. It has been observed that the company has misappropriated bank funds, manipulated books of accounts to raise funds from consortium lender banks. At present, the case is at NCLT which is in advance stage and the Bank expects good recovery in the account.

This is in compliance with the regulation 30 of SEBI (LODR) Regulations, 2015. 

In another case that came to light last year, PNB has been defrauded of over $2 billion. 

Bhushan Power and Steel is one of India's most indebted companies. It was among the first 12 companies referred by the Reserve Bank of India to a bankruptcy court for a debt resolution process under the new insolvency law.