Punjab & Sind Bank declares Lanco Infratech as ‘fraud account’

Punjab & Sind Bank (PSB) has declared the non-performing asset (NPA) account of Lanco Infratech Ltd as a “fraud account” and reported the same to the Reserve Bank of India.

Lanco Infratech had outstanding dues of ₹215.17 crore, PSB said in a filing with the stock exchanges.

PSB has already provided 100 per cent towards provisioning for this amount.

It maybe recalled that Lanco Infratech was among the first 12 accounts that were listed by the RBI for Corporate Insolvency Resolution Process (CIRP). This company was admitted for liquidation in August 2018 after an order by the National Company Law Tribunal. The total bank consortium exposure in Lanco Infratech was about ₹47,000 crore and banks had to take haircut of 88 per cent, sources said.

Lanco Infratech was the only listed entity of the Group and had to be delisted from both the exchanges following liquidation.