State-owned Punjab National Bank (PNB) has reported a loan fraud of Rs 2,434 crore to the Reserve Bank of India (RBI), committed by the former promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL).

While the borrowing fraud of SEFL amounted to Rs 1,240.94 crore, in case of SIFL it stood at Rs 1,193.06 crore.

The bank has made full provisions against the entire outstanding amount, PNB said in a regulatory filing today.

Both companies were successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Appellate Tribunal (NCLT). National Asset Reconstruction Company Ltd (NARCL) emerged as a successful bidder for acquiring the two entities in December 2023.

The RBI, in October 2021, superseded the boards of SIFL and its wholly-owned subsidiary SEFL over alleged mismanagement and repayment failures involving dues of nearly Rs 28,000 crore. It subsequently initiated proceedings under the Insolvency and Bankruptcy Code (IBC).

SREI started in 1989 as an asset financing non-banking financial company (NBFC) and was controlled by the Kolkata-based Kanorias.