Punjab National Bank shares slip 3% as lender reports ₹2,434 crore loan fraud against SREI Group

These two entities with financial debt amounting to ₹32,700 crore went through resolution under the Insolvency and Bankruptcy Code, and the new promoter, National Asset Reconstruction Company Ltd (NARCL), acquired them in December 2023.

The bank has reported a case of borrowing fraud to the RBI against the erstwhile promoters of SEFL and SIFL, amounting to ₹1,240.94 crore and ₹1,193.06 crore, respectively, PNB said in a regulatory filing.

The bank has already made 100% provisions against the entire outstanding amount, it said.

The Reserve Bank of India, in October 2021, superseded the boards of SIFL and its wholly owned subsidiary SEFL. The Kolkata-based Kanorias previously controlled the twin companies, SIFL and SEFL, until the RBI superseded their boards over alleged mismanagement and subsequently initiated IBC proceedings.

PNB share price

At 10 AM, shares of Punjab National Bank (PNB) were trading at ₹119.43 apiece on NSE, falling 0.78%.

Over a month’s time, PNB shares have dropped nearly 5%, while the stock has gained more than 8% in 6 months. Since the beginning of 2025, PNB shares have surged over 16%.

Shares of the firm had hit a 52-week high of ₹127.80 on December 2, 2025, and a 52-week low of ₹85.46 on March 4, 2025.

The lender has a total market capitalisation of ₹1.37 lakh crore, according to data from the NSE.

PNB Q2 earnings

Punjab National Bank had reported a net profit of ₹4,904 crore in the second quarter of the current financial year, marking an increase of 14% from ₹4,303 crore in the same period last year.

Its net interest income, or difference between interest earned on loans and expended on deposits, declined marginally to ₹10,469 crore in the July-September period from ₹10,517 crore in the year-ago period.

During the quarter, Punjab National Bank wrote back provisions worth ₹639 crore for bad loans against provisioning of ₹199 crore in the same period last year.

The Delhi-based lender's asset quality showed an improvement as its gross non-performing assets, as a percentage of total advances, improved to 3.45% from 4.48% a year earlier.

Its net NPA improved to 0.36% from 0.46%. In absolute terms, gross NPA was at ₹40,343 crore as against ₹47,582 crore during the second quarter of last financial year.