Punjab National Bank Reports ₹2,434 Crore Fraud in SREI Group

Punjab National Bank (PNB) has disclosed a borrowal fraud of ₹2,434 crore involving the erstwhile promoters of SREI Equipment Finance (SEFL) and SREI Infrastructure Finance (SIFL). The bank reported the case to the Reserve Bank of India and made a 100% provision for the entire amount — ₹1,240.94 crore for SEFL and ₹1,193.06 crore for SIFL — ensuring no further financial impact. The disclosure, made under SEBI’s listing norms, highlights PNB’s commitment to transparency and regulatory compliance. Notably, both SREI entities have been successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal, bringing closure to a complex and long-pending case. Following the announcement, PNB’s shares declined 0.56% to ₹120.25. However, the full provisioning underscores the bank’s conservative risk management and limits potential losses. The resolution marks a key step in cleaning up legacy NPAs and restoring confidence in public sector banking governance.