After Punjab and Sind bank, Punjab National Bank has also classified it’s exposure to IL&FS Tamil Nadu as a fraud account. The account is worth nearly Rs 2,060.14 crores.
The bank has prepared a provision of Rs 824.06 crores. Punjab and Sind Bank had an exposure of Rs 148 crores.
“A fraud of Rs 2,060.14 crore is being reported by bank to RBI (Reserve Bank of India) in the accounts of the company. Bank has already made provisions amounting to `824.06 crore, as per prescribed prudential norms,” PNB said in a notification to the exchanges.
IL&FS Tamil Nadu Power is a special purpose vehicle (SPV) promoted by IL&FS Energy Development Company, which in turn, is a subsidiary of Infrastructure Leasing & Financial Services (IL&FS).
As a fraud account, the company is not eligible to raise funds from the banking system and relevant authorities are informed. Actions have been initiated against the management of the company.