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

Punjab & Sind Bank on Wednesday said it has declared Lanco Infratech Ltd as a fraud account, which has outstanding dues of ₹215.17 crore. The NPA account has been reported to RBI as per regulatory requirement, the bank said in a regulatory filing. The company owes more than ₹44,000 crore to an IDBI Bank-led lenders' consortium.

Vikrant Shekhawat : 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.