Punjab National Bank reported a new borrowing fraud worth Rs. 1,203 crores by Ahmedabad-based Sintex Industries Ltd. The government-owned bank said in a regulatory filing that it has made a provision of Rs. 215.21 crore, which is required by law, after they have detected the fraud at their Ahmedabad zonal office. PNB has reported the matter to Reserve Bank of India (RBI).
Sintex Industries Ltd is a textile and yarn maker and part of the Sintex group that makes plastic water tanks.
As per reports, other bankers of the company include Bank of Baroda, Canara Bank, Punjab and Sind Bank, and Bank of India. Its total debt stood at â‚¹7,157.9 crores as on 31 March.
PNB was earlier caught in a similar, much larger scam worth Rs.11,350 crore involving businessman and diamond merchants Mehul Choksi and his nephew Nirav Modi. Their companies allegedly availed credit from overseas branches of Indian banks using fraudulent guarantees of PNB.
Banks in the country have been trying to recover money from irresponsible borrowers amid the coronavirus crisis.