Allahabad Bank hit by fraud of Rs 688 crore by SEL Manufacturing

Last week, the Kolkata-headquartered lender had disclosed to the RBI about a fraud of Rs 1,774.82 crore by Bhushan Steel and Power

By PTI  
Thursday, July 18, 2019

State-owned Allahabad Bank said it has been hit by a fraud of Rs 688.27 crore by SEL Manufacturing and the matter is before the National Company Law Tribunal.

"We have to inform that a fully provided non-performing account, SEL Manufacturing Ltd. with outstanding dues of Rs 688.27 crore for which NCLT proceedings are in progress," Allahabad Bank said in a regulatory filing.

The account has also been declared as fraud and reported to the Reserve Bank of India as per regulatory requirement, it added.

Last week, the Kolkata-headquartered lender had disclosed to the RBI about a fraud of Rs 1,774.82 crore by Bhushan Steel and Power Ltd., alleging diversion of funds from banking system by the company.

"The bank has already made provisions amounting to Rs 900.20 crore against the exposure of the bank in BPSL," Allahabad Bank had said on Saturday. Stock of Allahabad Bank closed 1.92 percent down at Rs 43.50 on BSE.

Also read: Allahabad Bank shares fall nearly 15% on Rs 1,775-crore fraud by Bhushan Power

Also read: Allahabad Bank reports $259 million alleged fraud by Bhushan Power & Steel

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