Punjab & Sind Bank declares SREI firms' outstanding dues as fraud

Lender becomes first to classify SREI Infra Finance and SREI Equipment Finance as fraud accounts, say sources; bank says the accounts fully provided for as per prudential norms

Punjab & Sind Bank has declared outstanding dues of SREI companies as fraud, it said in a notice to the stock exchanges on Tuesday.

In its filing, the bank said that the NPA accounts, SREI Infrastructure Finance (SIFL) with outstanding dues of Rs 510.16 crore and SREI Equipment Finance Limited (SEFL) with outstanding dues of Rs 724.18 crore have been declared as fraud and reported to the RBI today as per regulatory requirement.

With this, the bank became the first to classify SIFL and SEFL as fraud accounts, according to sources.  

In its filing, the bank also said that the