- Public sector Punjab National Bank again reported Rs 1,203 crore borrowed fraud by Sintex Industries.
- Sintex Industries is a Kalol-based textile industry considered as the world's largest producer of plastic water tanks and Asia's largest manufacturer of corduroy fabrics.
The Indian government-owned Punjab National Bank on Wednesday reported Rs 1,203 crore ($164 million) borrowed fraud by Sintex Industries.
The bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms, the state-owned lender clarified.
In January 2018, PNB reported one of the massive borrowed fraud of Rs 11,356 crore ($1.4 billion) related to the issuing of loans to diamond merchants Mehul Choksi and Nirav Modi.
Now, PNB reported the fraud led by Sintex Industries in the non-performing assets (NPA) account.
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According to the sources, The fraud was reported in PNB's Ahmedabad Branch, Zonal Office in Gujarat.
Further, This fraud of Rs 1203 crore led by Sintex Industries is being reported by the bank to the authority RBI (Reserve Bank of India) in the company accounts, said reports.
Under the RBI norms, banks will have to make up to 100% provision on a fraud hit account. This provision can be made over a few quarters.
Just after the announcement of the fraud, PNB shares dropped by 1.93% lower at Rs 28 per share.
Sintex Industries also known as The Bharat Vijay Mills Ltd, is a Kalol-based textile industry company considered as the world's largest producer of plastic water tanks and Asia's largest manufacturer of corduroy fabrics.
The company currently operates in Europe, America, Africa, and Asia, especially in France, Germany, and the US.
As reported, Sintex Industries total debt was Rs 7,358.88 crore at the end of June 2020.
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