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Anil Ambani firm a 'fraud' in PNB books

Anil Ambani firm a 'fraud' in PNB books
Anil Ambani firm a 'fraud' in PNB books
PNB’s move is likely to affect the risk settings of RHFL and alter the market and public perception of the company, the official added.

Synopsis

Upon declaring an account as fraud, banks are required to make provisions for 100 per cent of the outstanding loan amount, as per Reserve Bank of India guidelines. PNB had Rs 80 crore of exposure to the Anil Ambani-led Reliance Group company as of July 3 last year.

New Delhi: Punjab National Bank (PNB) declared Reliance Home Finance Ltd’s (RHFL) account with it as a “fraud account” after a forensic audit proved that there was diversion of funds, an official at the state-run lender said.“The account was declared fraud based on the forensic audit. At a time when capital is so scarce, why should I declare an account fraud for no reason. It is based on facts and figures,” the official said.Upon declaring an
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