PNB Reports Rs 2,434 Cr Srei Group Loan Fraud to RBI

• Punjab National Bank reported a Rs 2,434 crore loan fraud by erstwhile promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL) to RBI.
• The fraud involves Rs 1,240.94 crore from SEFL and Rs 1,193.06 crore from SIFL.
• Srei Group, with Rs 32,700 crore debt, underwent Insolvency and Bankruptcy Code resolution, acquired by NARCL in Dec 2023.
• PNB has already made 100% provisions against the entire outstanding amount.
• RBI superseded SIFL and SEFL boards in Oct 2021 due to alleged mismanagement by the Kanorias.

Why It Matters: PNB reported a significant loan fraud by Srei Group's former promoters, with full provisions made.