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Allahabad Bank Reports Fraud Worth Rs 688 Crore By SEL Manufacturing

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Less than week after reporting its exposure to Bhushan Steel and Power Ltd fraud of Rs 1,774.82 crore, Allahabad Bank informed the stock exchanges of another fraud by SEL Manufacturing.

"We have to inform that a fully provided non-performing account, SEL Manufacturing Ltd. with outstanding dues of Rs 688.27 crore for which NCLT proceedings are in progress," the state-owned bank said in a regulatory filing.

Allahabad Bank Reports Another Fraud Worth Rs 688 Crore
 

It also said that the dues have been declared as fraud and reported to the Reserve Bank of India as per the regulatory requirement.

On 13 July, the Kolkata-headquartered lender informed of its exposure of Rs 1,774.82 crore to the Bhushan Power and Steel's misappropriation of bank funds from a consortium of banks.

According to the CBI, Bhushan Power and Steel diverted around Rs 2,348 crore through its directors and staff from the loan accounts of PNB (IFB New Delhi & IFB Chandigarh), Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (IFB Kolkata) into the accounts of more than 200 shell companies without any obvious purpose.

Allahabad Bank also said that it has made provisions amounting to Rs 900.20 crore against exposure in BPSL.

Shares of the bank were trading 1.84 percent lower on Thursday at around 10 am at Rs 42.70 apiece.

Read more about: allahabad bank
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