“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,” the bank said in a regulatory filing.
The Punjab National Bank (PNB) has reported a new borrowing fraud worth ₹ 1,203 crore by Ahmedabad-based firm Sintex Industries Ltd, whose debt-restructuring plan was rejected by lenders in December last year.
On Wednesday, in a regular filing, the government-owned PNB said it has made a provision of ₹ 215.21 crore, which is required by law after it detected the fraud at its corporate banking branch in Ahmedabad.
“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,” the bank said in a regulatory filing.
Sintex Industries Ltd, which is a manufacturer of textiles and yarn, belongs to the Sintex group that makes plastic water tanks and is almost a household name in India. Sintex group is owned by Sintex Plastics Technology Ltd that demerged from Sintex Industries in 2017.
Amid prolonged credit crunch, the coronavirus crisis, and weakening economic growth, the banks in the country have been trying to recover money from delinquent borrowers.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
