Punjab & Sind Bank declares IL&FS Tamil Nadu Power as fraud account

New Delhi: Public sector Punjab & Sind Bank (PSB) on Tuesday said it has declared bad asset IL&FSTamil NaduPowerCompany, with dues of over Rs 148 crore, as a fraud account and reported it to theReserve Bank. As per the bank’s policy on determination and disclosures on material events, PSB said it has declared this non-performing account (NPA) as a fraud account.

“It is informed that an NPA account, viz IL&FS Tamil Nadu Power Company Ltd with outstanding dues of Rs 148.86 crore has been declared as fraud and reported to RBI today as per regulatory requirement,” the lender said in a regulatory filing.

The bank said it has already made provisions amounting to Rs 59.54 crore, as per the prescribed prudential norms.

The company was set up as a special purpose vehicle (SPV) by the debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform IEDCL for implementation of thermal power projects at Cuddalore in Tamil Nadu.

Stock of PSB closed at Rs 15.95 apiece on BSE, up 1.92 per cent from the previous close.