Mumbai, October 01:
Public sector lender Punjab National Bank has reported a fraud of Rs 1,203 crore by Ahmedabad-based Sintex Industries Pvt Ltd, which had run into trouble last year, said media reports.
The company’s debt restructuring plan was also rejected by the lender last December.
In a regulatory filing, PNB said it detected the fraud at its corporate banking branch in Ahmedabad, and, thereafter, made a provision of Rs 215.21 crore, which is required by law, said an NDTV report.
Sintex Industries Ltd makes textiles and yarn and is owned by Sintex group Ltd, which makes Sintex water tanks, a household name in India.
Sintex Plastics Technology Ltd owns Sintex group, the maker of water tanks.
Sintex Industries Ltd had demerged from Sintex Industries Ltd in 2017, said the report.
Hit by mega frauds, banks in India are struggling to recover money from delinquent borrowers, along with strained credit flow, coronavirus crisis and weak economy.