Punjab National Bank (PNB) share price came under pressure in Monday’s opening session on December 29, falling 3% to an intraday low of ₹116.60 after the bank reported loan fraud. However, the shares recouped early losses and were trading with a mild gain of 0.36% at ₹120.75 apiece.
On Friday, the bank informed the Reserve Bank of India (RBI) about a borrowal ₹2,434 crore linked to the former promoters”>fraud of around ₹2,434 crore linked to the former promoters of SREI Equipment Finance Ltd and SREI Infrastructure Finance Ltd.
These companies were successfully resolved under the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), PNB noted.
Out of the ₹2,434 crore fraud amount, ₹1,241 crore is associated with a loan account of SREI Equipment Finance Ltd., while ₹1,193 crore relates to the loan account of SREI Infrastructure Finance Ltd. The lender has already made provisions for the total outstanding amount, according to the filing.
The two entities, with financial debt amounting to ₹32,700 crore, underwent resolution under the Insolvency and Bankruptcy Code (IBC), and the new promoter, National Asset Reconstruction Company Ltd (NARCL), acquired them in December 2023.
The Reserve Bank of India, in October 2021, superseded the boards of SIFL and its wholly owned subsidiary SEFL. The Kolkata-based Kanoria family had previously controlled the twin companies until the RBI superseded their boards over alleged mismanagement and subsequently initiated IBC proceedings.
SREI began its journey in 1989 as an asset-financing NBFC, with Hemant Kanoria as the key face of SIFL.
For the September quarter, the₹4,903.7 crore”> bank reported a 13.94% rise in net profit to ₹4,903.7 crore, compared with ₹4,303.4 crore in the same quarter a year ago.
Total interest income rose 6.7% to ₹3,187 crore from ₹2,987 crore in the corresponding period of the previous year. The bank’s net interest income remained largely unchanged at ₹10,469 crore, compared with ₹10,517 crore a year earlier.
PNB share price history
After a prolonged period of losses, PNB shares staged a sharp recovery in February with a 10% surge and maintained the same momentum in the following months, closing six out of the next eight months in the green. During this period, the shares have rallied 43%.
In terms of yearly performance, the stock has delivered a 17% return in 2025 and is on track for a fifth consecutive year of positive gains. However, it still trades 16% below its 2024 high of ₹143 apiece.
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