After Punjab National Bank, state-run Allahabad Bank on Saturday reported a fraud of over Rs 1,774 crore by Bhushan Power and Steel (BPSL) to the Reserve Bank of India.
Allahabad Bank in a regulatory filing said the fraud has been reported on the basis of forensic audit investigation findings and a CBI case against the company and its directors, alleging diversion of funds from banking system by BPSL.
Last week, PNB had reported a fraud worth Rs 3,805.15 crore by the bankrupt steel company by misappropriating bank funds and manipulating its books of accounts. Around 85 per cent of PNB’s Rs 4,399-crore exposure to the company had been siphoned off.
