Shares of Punjab National Bank fell as much as 3.1% to Rs 116.6 apiece on December 29 as the PSU bank reported a loan fraud of Rs 2,434 crore committed by former promoters of SREI Equipment Finance Ltd (SEFL) and SREI Infrastructure Finance Ltd (SIFL) to the Reserve Bank of India.

These two entities with financial debt amounting to Rs 32,700 crore went through resolution under the Insolvency and Bankruptcy Code and the new promoter National Asset Reconstruction Company Ltd (NARCL) acquired them in December 2023.

The bank has reported a case of borrowing fraud to the RBI against the erstwhile promoters of SEFL and SIFL, amounting to Rs 1,240.94 crore and Rs 1,193.06 crore, respectively, PNB said in a regulatory filing.

At 10:35 am on December 29, PNB shares were trading 0.4% lower at Rs 119.92 apiece and were on track to snap three months of gains.