PNB is heading into a high-volatility session this coming Monday. As of Saturday, December 27, 2025, the state-run lender has officially flagged a massive ₹2,434 crore loan fraud involving the SREI Group.
The thing is, the disclosure dropped just after the markets closed on Friday. Or nothing. Let’s be real, even though the bank says it’s already covered the losses, the “F-word” (fraud) always makes investors a bit twitchy. Those too. PNB shares ended Friday down slightly at ₹120.35, but all eyes are on the Monday morning bell.
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The SREI Connection
This isn’t a new problem, but a legacy one finally being called what it is. The fraud centers on two entities:
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SREI Equipment Finance (SEFL): ₹1,240.94 crore.
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SREI Infrastructure Finance (SIFL): ₹1,193.06 crore.
The bank’s forensic audit by KPMG reportedly found a mess of “connected party” loans and “evergreening”—basically shifting money around to make bad loans look good.
The “Safety Net”
And here’s the kicker: PNB is trying to calm the farm by highlighting their 100% provisioning.
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Already Paid For: The bank has already set aside the full ₹2,434 crore. This means no new “hole” in their upcoming profit reports.
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Resolution Done: These companies have already been through the NCLT (bankruptcy court) and were picked up by the “Bad Bank” (NARCL) last year.
Financial Health Check
Despite the fraud headlines, the bank’s recent numbers (Q2 FY26) actually look decent: | Metric | Status | | :— | :— | | Net Profit | ₹4,904 Crore (Up 14% YoY) | | Gross NPA | 3.45% (Improving) | | Net NPA | 0.36% (Very healthy) | | Provision Coverage (PCR) | 96.91% |
It’s an ongoing situation where the stock has actually been a “multibagger” for many, up 17% so far in 2025. Technical indicators like the RSI are sitting at 50.8, which is the “neutral zone.” Basically, the market is undecided—is this a “clean-up complete” signal or a “more skeletons in the closet” warning?
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