Sintex Industries share hits lower circuit on Rs 1,203-crore fraud in NPA account

Share of Sintex Industries fell 5% on October 1 after state-run Punjab National Bank on September 30 reported a fraud of Rs 1,203.26 crore in the non-performing assets (NPA) account of the firm. Sintex Industries stock was stuck in the lower circuit of 5% since opening trade. The stock has lost 8.72% in the last 2 days. There  were only sellers and no buyers for the stock.

The share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages. The share has gained 14.37% in one year and risen 148% since the beginning of this year.

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Total 4.73 lakh shares changed hands amounting to turnover of 9.43 lakh on BSE.  Market cap of the firm fell to Rs 118.22 crore. "A fraud of Rs 1,203.26 crore is being reported by Bank to the RBI in the accounts of the Company (SIL)," the bank said in a notification to exchanges.

The bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms, the lender said.

Under RBI norms, banks will have to make up to 100 percent provision on a fraud hit account. This provision can be made over a period of few quarters. Provision refers to the amount banks need to set aside against likely losses.

Punjab National Bank (PNB) shares were trading flat while that of Sintex Industries fell  percent intraday on October 1 after the state-run bank on September 30 reported a fraud of Rs 1,203.26 crore in the non-performing assets (NPA) account of Sintex Industries.

Meanwhile, benchmark indices traded majorly bullish on Thursday, amid positive global equities. Sensex rose 606 points to 38,674 and Nifty gained 170 points to 11,417.

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