Allahabad Bank reports 2nd fraud in a week

In a major development that raises serious questions on Allahabad Bank’s operation, the state-run bank has reported about being defrauded for the second time in just a week.

After Bhushan Power and Steel, SEL Manufacturing Ltd. (SELM) has defrauded the bank of Rs 688.27 crore.

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Allahabad Bank on Saturday informed the stock exchanges that it has been defrauded by Bhushan Power & Steel Ltd (BPSL) to the tune of Rs 1,774.82 crore.

However, the bank on Thursday said “we have to inform that a fully provided Non Performing Account, viz. SEL Manufacturing Ltd. (SELM) with an outstanding due of Rs 688.27 crore for which NCLT proceedings are in progress, has also been declared as fraud and reported to RBI as per regulatory requirement,” the bank said in a regulatory filing.

At 12.40 p.m., Allahabad Bank was trading at Rs 42.30, down 2.70 per cent from its previous close.