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PNB reports borrowing fraud worth Rs 1,200 crore by Sintex Industries

New Delhi, 1-Oct-2020

The Punjab National Bank (PNB) on September 30 reported a borrowing fraud worth Rs 1,203.26 crore by Ahmedabad-based Sintex Industries Ltd. Pursuant to the applicable provisions of SEBI�s Listing Obligations and Disclosure Requirements (LODR) and the bank�s policy, �we inform reporting of borrowed fraud of Rs 1,203.26 crore in NPA account of Sintex Industries Ltd (SIL),� PNB said in a regulatory filing. The fraud reporting pertains to the large corporate branch at Ahmedabad zonal office, it added. The PNB said in the regulatory filing that it has made a provision of Rs 215.21 crore, which is required by law, after it detected the fraud at its corporate banking branch in Ahmedabad. �The fraud of Rs 1,203.26 crore is being reported by bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms,� it added. Sintex Industries�s debt-restructuring plan was dismissed by lenders last year in December. Sintex Industries Ltd, which makes textiles and yarn, belongs to the Sintex Group that makes plastic water tanks.