PNB Share Price in Focus; Reports ₹2,434 Crore Borrowal Fraud to RBI about Former SREI Promoters

Punjab National Bank (PNB) has reported a borrowal fraud of ₹2,434 crore to the Reserve Bank of India, linked to the former promoters of SREI Equipment Finance Ltd and SREI Infrastructure Finance Ltd.  

The information was shared by the state-run lender through a regulatory filing on Friday. 

Break-Up of the Reported Fraud 

According to the filing, ₹1,240.94 crore of the total amount relates to SREI Equipment Finance, while ₹1,193.06 crore pertains to SREI Infrastructure Finance.  

PNB said it has already made full, or 100%, provisioning for both accounts, covering the entire outstanding exposure. 

Basis for Fraud Classification 

The bank stated that the fraud classification followed findings from a forensic audit. The audit reportedly flagged irregularities such as loans being extended to related or connected parties and possible evergreening of borrowings.  

Evergreening refers to the practice of using fresh loans to service older dues, which can delay the recognition of stress in loan accounts. 

Status of Insolvency Proceedings 

Both SREI Equipment Finance and SREI Infrastructure Finance have already been resolved under the Corporate Insolvency Resolution Process.  

The resolution was carried out through proceedings before the National Company Law Tribunal. PNB said the reporting of the fraud was done after the completion of these processes and in line with regulatory norms. 

Punjab National Bank (PNB) Share Price Performance  

As of December 29, 2025, 10:09 am, Punjab National Bank share price was trading at ₹119.83 on the NSE, a 0.45% down from the previous closing price. 

Read More: Coforge Share Price in Focus; To Acquire US-Based Encora in $2.35 Billion Deal! 

Conclusion 

The reporting of the ₹2,434 crore borrowal fraud adds to the series of regulatory actions linked to the SREI Group, with PNB stating that the financial impact has already been fully accounted for in its books. 

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