Business / Punjab & Sind Bank declares Lanco Infratech as fraud account with ₹215cr as dues

Zoom News : Jun 17, 2021, 02:58 PM
New Delhi: Public sector lender Punjab & Sind Bank has declared Lanco Infratech as ‘fraud’ account, the bank said in a regulatory filing on Wednesday.

The bank has an exposure of Rs 215 crore towards Lanco Indratech. “It is informed that an NPA account Lanco Infratech Limited with outstanding dues of Rs 215.17 crore has been declared as fraud and reported to RBI today as per regulatory requirement,” the lender said.

The bank also stated that it had fully provided for Lanco Infratech. If an account is declared fraud, banks need to set aside 100% of the outstanding loans as provisions, either in one go or spread over four quarters, according to RBI.