Allahabad Bank reports ?1775 cr fraud by Bhushan Power & Steel
After Punjab National Bank (PNB), another state-owned lender Allahabad Bank Saturday reported a fraud of over ?1,774 crore by Bhushan Power and Steel to the Reserve Bank of India. In a regulatory filing, Allahabad Bank said on the basis of the findings of the forensic audit investigation and the CBI's FIR against the company and its directors, alleging diversion of funds from banking system by Bhushan Power and Steel Ltd (BPSL), a fraud of ?1,774.82 core has been reported by the bank to the RBI. Around 85% of PNB's ?4,399 crore exposure to the company had been siphoned off. It has been observed that the company misappropriated bank funds, and manipulated books of accounts to raise funds from the consortium of banks, Allahabad Bank said. The bank has already made provisions amounting to ?900.20 crore against exposure of the bank in Bhushan Power and Steel.
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