38.6c New Delhi, India, Wednesday, June 19, 2024
Business

PNB shares plunge by 7% after reporting Rs 3,688.58 crores DHFL loans as fraud

By Shreedhara Purohit      10 July, 2020 08:24 PM      0 Comments
PNB shares plunge by 7% after reporting Rs 3,688.58 crores DHFL loans as fraud

The share price of Punjab National Bank slumped nearly 7 percent on Friday ( July 10, 2020) after the bank reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI.

 The stock plunged 6.73 percent to Rs 34.60 on the BSE. On the NSE, it tanked 6.73 percent to Rs 34.60. It pared losses later, trading 5.53 percent lower at Rs 35 per share, at 11:50 am.

"A fraud of Rs 3,688.58 crore is being reported by Bank to RBI in the accounts of the Company (DHFL)," PNB said in a stock exchange filing.

In a regulatory filing, the bank said it has already made provisions regarding the same, amounting to Rs 1,246.58 crore.

It has also approved an appropriation of accumulated losses of Rs 28,707.9 crore from the share premium account of the amalgamated bank, it added further.

The public lender, on July 9, said that it was looking to raise Rs 10,000 crore through a share and bond sale. It further said that it would explore raising the funds through a combination of QIP, FPO, rights issue, and issuance of 2-tier bonds.

The lender has also sought shareholders' nod to Rs 7,000 crore in equity capital in its forthcoming annual general meeting.

Many banks have already declared DHFL as a fraud account. Its promoters Kapil Wadhawan and Dheeraj Wadhawan were arrested by the Central Bureau of Investigation in April.

In November last year, RBI had sent the troubled mortgage lender for bankruptcy proceedings, making it the first financial services player to go to the National Company Law Tribunal for a possible debt resolution.



Share this article:



Leave a feedback about this
TRENDING NEWS

jain-community-dresses-up-as-muslims-to-buy-124-goats-saves-them-from-bakrid-slaughter
Trending News Updates
Jain Community dresses up as Muslims to buy 124 Goats , saves them from Bakrid slaughter

Jain community in Delhi raises Rs 15 lakh, dresses as Muslims to buy and rescue 124 goats from Bakrid slaughter, garnering praise and attention.

18 June, 2024 01:19 PM
thailand-passes-bill-to-legalise-same-sex-marriage
Trending International
Thailand passes Bill to legalise same-sex marriage

Thailand’s lawmakers approve a marriage equality bill, setting the stage for the country to become Southeast Asia’s first to legalize same-sex marriage.

18 June, 2024 04:51 PM

TOP STORIES

karan-johar-moves-bombay-high-court-against-film-shaadi-ke-director-karan-aur-johar
Trending CelebStreet
Karan Johar moves Bombay High Court against film ‘Shaadi Ke Director Karan Aur Johar’

Karan Johar files a lawsuit in Bombay High Court against the film “Shaadi Ke Director Karan Aur Johar,” seeking to prevent the use of his name in the title.

13 June, 2024 12:01 AM
conspired-to-transform-india-into-an-islamic-country-by-2047-bombay-hc-denies-bail-to-3-islamists-pfi-members
Trending Judiciary
Conspired to transform India into an Islamic country by 2047: Bombay HC denies bail to 3 Islamists PFI members [Read Order]

Bombay High Court denies bail to three PFI members accused of plotting to turn India into an Islamic state by 2047, citing strong evidence and risk of tampering.

13 June, 2024 12:37 AM
delhi-hc-refuses-to-stay-neet-ug-admissions-counselling-over-paper-leak-allegations
Trending Judiciary
Delhi HC refuses to stay NEET-UG admissions counselling, over paper leak allegations

Delhi High Court refuses to stay NEET-UG 2024 counselling amidst allegations of irregularities.

13 June, 2024 12:48 PM
centre-to-hold-re-test-for-1563-candidates-awarded-grace-marks-in-neet-ug-2024
Trending Judiciary
Centre to hold re-test for 1563 candidates awarded grace marks in NEET UG, 2024 [Read Order]

Centre to hold re-test for 1563 candidates awarded grace marks in NEET UG 2024. Date for re-test to be notified on June 13, results by June 30.

13 June, 2024 01:39 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email