Punjab National Bank Makes $226 Million Provision on Dewan FraudBy
Skip to content Menu Bloomberg Subscribe Photographer: Anindito Mukherjee/Bloomberg Markets Punjab National Bank Makes $226 Million Provision on Dewan Fraud By Anirban Nag Updated on Punjab National Bank, India’s second-largest state-run lender that has been hit by a slew of recent scandals, on Friday said it has set aside provisions of about 17 billion rupees ($226 million) for a fraud linked to a bankrupt shadow financier. The bank had on Thursday reported the 36.9 billion rupee fraud in the accounts of Dewan Housing Finance Corp. At the time it had said it provided 12.5 billion rupees, and then revised the figure in a Friday filing. Dewan Housing is a financier seized by the regulator in November as India stepped up efforts to contain a brewing shadow banking crisis. Punjab National Bank in June reported about 735 billion rupees of gross bad loans for the quarter ended March 31 -- 14.21% of total advances down from 15.5% the previous quarter. Read More: Fraud-Hit Indian Bank Eyes