New Delhi: State-owned Allahabad Bank on Wednesday said the bank has been hit by a fraud of ₹688.27 crore by SEL Manufacturing and the matter is before the NCLT. "We have to inform that a fully provided non-performing account, SEL Manufacturing Ltd (SELM) with outstanding dues of ₹688.27 crore for which NCLT proceedings are in progress," Allahabad Bank said in a regulatory filing. The account has also been declared as fraud and reported to the Reserve Bank of India (RBI) as per regulatory requirement, it added. Last week, the Kolkata-headquartered lender had disclosed to the RBI about a fraud of ₹1,774.82 crore by Bhushan Steel and Power Ltd (BSPL), alleging diversion of funds from banking system by the company. "The bank has already made provisions amounting to ₹900.20 crore against the exposure of the bank in BPSL," Allahabad Bank had said on Saturday.

Source: Mint July 18, 2019 02:48 UTC