After PNB, this state-run lender reports over Rs 226 crore fraud by Gupta Power Infrastructure

State-owned Bank of India (BOI) on Friday reported a fraud of Rs 226.84 crore by Odisha-based Gupta Power Infrastructure Ltd to the Reserve Bank.

The bank has informed that non-performing asset (NPA) of Gupta Power Infrastructure Ltd has been declared as fraud, BOI said in a regulatory filing. Against the outstanding amount of Rs 226.84 crore, the bank has made provisions of Rs 212.62 crore in case of Gupta Power Infrastructure Ltd, it said.

For the third quarter ended December 2024, BOI posted a 35 per cent jump in net profit to Rs 2,517 crore against Rs 1,870 crore in the year-ago period. The lenders' total income increased to Rs 19,957 crore during the third quarter of the ongoing fiscal against Rs 16,411 crore a year ago.

The interest income of the bank rose to Rs 18,210 crore against Rs 15,218 crore in the third quarter of the preceding year. Its net interest income (NII) increased to Rs 6,070 crore against Rs 5,463 crore for Q3 FY24.

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PNB flags Rs 270.57 crore fraud

On Tuesday, state-owned Punjab National Bank also reported a fraud of Rs 270.57 crore by Gupta Power Infrastructure Ltd to the Reserve Bank. Borrowal fraud of Rs 270.57 crore has been reported to the Reserve Bank of India (RBI) in the non-performing asset (NPA) account of Gupta Power Infrastructure Ltd, PNB said in a regulatory filing.

The loan was given by Station Square branch of the bank in Bhubaneswar, it said. The bank has already made provisions amounting to Rs 270.57 crore, according to prescribed prudential norms.

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For the December quarter, PNB posted more than two-fold jump in net profit to Rs 4,508 crore as against Rs 2,223 crore in the same quarter a year ago.

The company’s total income increased to Rs 34,752 crore from Rs 29,962 crore in the same period a year ago, PNB said in a regulatory filing.

Interest income also rose to Rs 31,340 crore from Rs 27,288 crore in the same quarter a year ago. On the asset quality front, the bank’s gross non-performing assets ratio moderated to 4.09 per cent from 6.24 per cent a year ago.