Punjab & Sind Bank declares IL&FS Tamil Nadu Power as fraud account, outstanding dues at Rs 148 crore

Public sector Punjab & Sind Bank (PSB), on February 15, said it had declared bad asset IL&FS Tamil Nadu Power Company, with dues of over Rs 148 crore, as a fraud account and reported it to the Reserve 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 had 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 -laden Infrastructure Leasing & Financial Services Ltd (IL&FS) under its energy platform IEDCL for implementation of thermal power projects at Cuddalore in Tamil Nadu.

The stock of PSB closed at Rs 15.95 apiece on BSE, up 1.92 percent from the previous close.