PNB Uncovers Rs 2,434 Cr SREI Loan Fraud; 'Evergreening' Scheme Exposed

• Punjab National Bank (PNB) reported a Rs 2,434 crore loan fraud by former SREI Group promoters to RBI and stock exchanges.
• The fraud involved 'evergreening' of loans, where new loans were taken to repay old ones, hiding financial stress.
• SREI founder Hemant Kanoria disputes the forensic audit report, stating the matter is sub judice and bank's actions are illegal.
• SREI Group companies, owing Rs 32,750 crore to Indian banks, have been in insolvency since 2021.
• PNB has provisioned 100% for these non-performing loans, ensuring no impact on its current financial profits.

Why It Matters: PNB exposed a massive loan fraud by SREI Group, but the bank has fully provisioned for the losses.