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 ₹688.27 crore.

Allahabad Bank on Saturday informed the stock exchanges that it has been defrauded by Bhushan Power & Steel Ltd (BPSL) to the tune of ₹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 ₹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 ₹ 42.30, down 2.70 per cent from its previous close.