OMG! A reputed bank reports fraud of Rs 2,000 crore!

Crucial support for the stock is placed around the level of Rs 35.3

On Tuesday post-market hours, a state-owned bank reported fraudulent activity in one of its non-performing assets (NPA) account of around Rs 2,000 crore! 

Punjab National Bank, which provides various banking services, reported a borrowable fraud of Rs 2,060.14 crore in the NPA account of IL & FS Tamil Nadu Power Co. Ltd at Extra Large Corporate Branch at Delhi, Zonal Office. However, the bank has already made provisions amounting to Rs 824.06 crore, as per the prescribed prudential norms.  

Meanwhile, the stock had plummeted over 2 per cent on Tuesday and settled near the day’s low. Besides, the volume, when compared to its previous trading session, was also comparatively lower.   

In line with this, the stock could remain on the watch list of the market participants and could also witness a knee-jerk reaction at today’s opening bell. However, crucial support for the stock is placed around the level of Rs 35.3, and a breach of this support level could open gates for a further down move towards the level of Rs 34.5.   

Incidentally, the PNB announcement comes exactly a month after Punjab & Sind Bank announced the NPA account of IL & FS Tamil Nadu as a fraud account with outstanding dues of Rs 148.86 crore.