Punjab National Bank Loan Fraud of Rs 2434 Crore: How Did Such a Massive Embezzlement of Funds Occur?

Punjab National Bank: Punjab National Bank (PNB) shares will be in focus on Monday as another new case of loan fraud related to the bank has come to light. This could impact its share price.

Punjab National Bank: Punjab National Bank (PNB) shares will be in focus on Monday because, after the market closed on Friday, December 26, the bank disclosed a loan fraud of Rs 2434 crore in a regulatory filing. The bank has also informed the Reserve Bank of India (RBI) about this. This loan fraud case is related to two companies - SREI Equipment Finance Limited (SEFL) and SREI Infrastructure Finance Limited (SIFL).

In the information provided to the exchanges, the bank stated that SREI Equipment Finance Limited (SEFL) committed fraud of Rs 1,240.94 crore and SREI Infrastructure Finance Limited (SIFL) committed fraud of Rs 1,193.06 crore. This means that these two companies have not yet repaid the money borrowed from the bank. However, PNB has clarified that it has made 100 percent provisioning for the outstanding amount of both loans. The filing also stated that these companies have been resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT).

Punjab National Bank Shares

On Friday, PNB shares were already under pressure, closing at Rs 120.35 on the BSE, down 0.50 percent from the previous closing price of Rs 120.95. PNB shares have remained strong for a long time. It has increased by approximately 13 percent in the last six months and by 17 percent year-to-date in 2025. Technical indicators suggest that the stock is currently trading in a neutral zone. According to Trendline data, the Relative Strength Index (RSI) is at 50.8, while the Money Flow Index is at 55.4. Both indicators suggest that the stock is in the mid-range – neither overbought nor oversold.