PNB Flags Rs 2,434 Cr Fraud: Ex-SREI Promoters Implicated in Massive Loan Scam

• Punjab National Bank (PNB) reported a substantial loan fraud of over Rs 2,434 crore to the RBI.
• The fraud is linked to the "erstwhile promoters" of SREI Equipment Finance (Rs 1,240.94 cr) and SREI Infrastructure Finance (Rs 1,193.06 cr).
• Forensic audits by firms like KPMG flagged irregularities including fund siphoning and "evergreening" of loans.
• PNB has already made 100% provisions for the entire Rs 2,434 crore, ensuring no fresh negative impact on profits.
• SREI entities were acquired by the government-backed NARCL in December 2023 after an IBC resolution.

Why It Matters: PNB flags Rs 2,434 crore fraud by former SREI promoters, fully provisioned; SREI now under NARCL.