PNB Reports Rs 2,434 Cr Borrower Fraud to RBI; Shares in Focus

• Punjab National Bank (PNB) reported a Rs 2,434 crore borrower fraud to the Reserve Bank of India (RBI).
• The fraud involves erstwhile promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL).
• PNB shares opened lower at Rs 116.60 on Monday, December 29, after the disclosure.
• The bank has already made 100% provision for the entire outstanding amount related to the fraud.
• RBI had superseded the boards of SIFL and SEFL in October 2021 due to alleged mismanagement.

Why It Matters: PNB's shares are under scrutiny after reporting a significant Rs 2,434 crore borrower fraud to RBI.