PNB Hit by Another Scam, Reports Rs 2,060-Cr Fraud by Tamil Nadu Company, Details Here

State-owned lender Punjab National Bank has reported a fraud in borrowing value over Rs 2,000 crore within the NPA (non-performing asset) account of IL&FS Tamil Nadu Power. The incident has occurred on the Extra Large Corporate Branch in Delhi zonal workplace, the financial institution stated. “A fraud of Rs 2,060.14 crore is being reported by the bank to the RBI in the accounts of the company,” PNB stated in a submitting. This comes because the financial institution already fights the notorious case of the Nirav Modi rip-off. It added that the financial institution has already made provisions amounting to Rs 824.06 crore. “The bank has already made provisions amounting to Rs 824.06 crore, as per prescribed prudential norms,” PNB stated within the disclosure.

Earlier, the Punjab & Sind Bank (PSB) had stated on February 15 that it had declared IL&FS Tamil Nadu Power as unhealthy asset with dues of over Rs 148 crore, and reported it to the Reserve Bank of India. As per the financial institution’s coverage on willpower and disclosures on materials occasions, PSB stated it has declared this non-performing account (NPA) as a fraud account. “It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement,” the lender had stated in a regulatory submitting.

IL&FS Tamil Nadu Power is a particular goal automobile that was arrange by Infrastructure Leasing & Financial Services Ltd (IL&FS) beneath its vitality platform for implementation of thermal energy initiatives at Cuddalore in Tamil Nadu.

As per the RBI pointers, lenders shall acknowledge incipient stress in mortgage accounts, instantly on default, by classifying such belongings as particular point out accounts (SMA).

SMA 0 classes, as per the RBI, will probably be handled as default case match for decision if the principal or curiosity cost or every other quantity is wholly or partly overdue between 0-30 days. SMA-1 Categories are for these defaulters those that will probably be taken to Insolvency and Bankruptcy Code (IBC) if the principal or curiosity cost or every other quantity is wholly or partly overdue between 31-60 days. SMA-3 class defaulters will probably be forwarded with a National Company Law Tribunal (NCLT) case if the cost isn’t made between 61-90 days.

Resolution Plans involving restructuring or change in possession in respect of accounts the place the combination publicity of lenders is Rs 1 billion and above, “shall require unbiased credit score analysis (ICE) of the residual debt by credit standing companies (CRAs) particularly approved by the Reserve Bank for this goal,” the central bank rules note.

“While accounts with aggregate exposure of Rs 5 billion and above shall require two such ICEs, others shall require one ICE. Only such RPs which receive a credit opinion of RP4 or better for the residual debt from one or two CRAs, as the case may be, shall be considered for implementation,” it says.

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