Shares of Allahabad Bank slump by 14 pc following news of Fraud
New Delhi, July 15 (HS): Allahabad Bank, along with Punjab National Bank reported fraud by Bhushan Power and Steel amounting Rs. 1775 crore on Saturday to Reserve Bank of India. It has alleged diversion of funds on the basis of forensic audit investigation and has created provision of Rs. 900 crore for this exposure. Following this news, the shares of Allahabad Bank have slumped by 14.42 percent to Rs. 40.35 today.
The case of fund misappropriation and manipulation of accounts’ books by Bhushan Power and Steel is in progress under National Company Law Tribunal with expectation of good recovery. The more frauds by Bhushan Steel will come into light, if sources are to be believed.
It is noteworthy that besides fraud of Rs. 3800 crore reported by Punjab National Bank, the funds of Oriental Bank of Commerce (Kolkata), IDBI Bank (Kolkata) and UCO Bank (IFB Kolkata) have also been diverted into 200 shell companies with invalid purposes by Bhushan Power and Steel, according to CBI.
