Archive · 27 Dec 2025
PNB Reports Rs 2,434 Crore Fraud Linked to SREI Promoters
Punjab National Bank (PNB) has told the Reserve Bank of India (RBI) about a big fraud of Rs 2,434 crore.
This fraud is linked to the former leaders of two companies, SREI Equipment Finance and SREI Infrastructure Finance.
PNB has set aside enough money to cover the entire amount of the fraud.
Both companies were fixed through a special process called Corporate Insolvency Resolution Process by the National Company Law Tribunal (NCLT).
PNB also said that it has made full provisions for the outstanding amount.
The bank's shares went down a little after this news.
PNB reported a 14% rise in net profit for the July-September quarter of 2025-26.
The bank's operating profit and net interest income also showed growth.
Additionally, PNB's gross and net non-performing assets (NPA) ratios improved.
The bank's savings and current deposits increased year-on-year.
The National Asset Reconstruction Company Limited (NARCL) has significantly increased resolution, with recoveries more than doubling.
PNB reported a total borrowal fraud of Rs 2,434 crore to the RBI, involving former promoters of SEFL and SIFL.
The fraud includes Rs 1,240.94 crore from SREI Equipment Finance and Rs 1,193.06 crore from SREI Infrastructure Finance.
PNB has made 100% provision for the entire outstanding amount in both accounts.
Both SEFL and SIFL were successfully resolved under the Corporate Insolvency Resolution Process by the NCLT.
PNB's shares closed lower by 0.56% at Rs 120.25 on the NSE and 0.5% lower at Rs 120.35 on the BSE.
- Who
- Punjab National Bank (PNB) and former promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL)
- What
- Reporting of a Rs 2,434 crore borrowal fraud to the Reserve Bank of India (RBI)
- When
- Friday, December 26, 2025 (specific date not mentioned)
- Where
- India (PNB is a state-owned bank, and the fraud involves SREI Group companies)
- Why
- To comply with regulatory requirements and address bad loans proactively
- Total Fraud Amount
- Rs 2,434 crore
- Fraud in SREI Equipment Finance
- Rs 1,240.94 crore
- Fraud in SREI Infrastructure Finance
- Rs 1,193.06 crore
- Provision Made by PNB
- 100% of the outstanding amount
- Resolution Process
- Corporate Insolvency Resolution Process (CIRP) by NCLT
- Regulatory Compliance
- Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- PNB Share Price
- Rs 120.25 (NSE), Rs 120.35 (BSE)
- PNB's Provision Coverage Ratio
- 96.91% (Q2 2023)
- PNB's Net Profit (Q2FY26)
- Rs 4,904 crore
- PNB's Operating Profit (Q2FY26)
- Rs 7,227 crore
- PNB's Net Interest Income (H1FY26)
- Rs 21,047 crore
- PNB's Gross NPA Ratio (September 2025)
- 3.45%
- PNB's Net NPA Ratio (September 2025)
- 0.36%
- PNB's Savings Deposits (Y-o-Y Growth)
- Rs 5,08,964 crore (4.2%)
- PNB's Current Deposits (Y-o-Y Growth)
- Rs 74,215 crore (9%)
- NARCL's Recovery (April-October FY26)
- Rs 4,192 crore (13.66% of total acquisition)
Sources
PNB reports Rs 2,434 borrowal fraud linked to former SREI Group promoters
PNB flags over Rs 2,400 crore loan fraud tied to SREI accounts, makes full provision
PNB reports ₹2,434 crore borrowal fraud to RBI linked to former SREI promoters
PNB reports borrowal fraud to RBI against erstwhile promoters of SREI Equipment Finance and SREI Infrastructure Finance
PNB reports Rs 2,434-crore borrowal fraud linked to SREI Group firms
PNB reports RBI about ₹2,434 crore borrowal fraud linked to SREI's erstwhile promoters
Run For Money: PNB Flags Rs 2,434 Crore Borrowal Fraud Linked To Former SREI Promoters
PNB Reports Over Rs 2,400 Cr Loan Fraud
PNB shares in focus on Monday after bank reports Rs 2,434 crore loan fraud; check details
