Punjab National Bank (PNB) has reported a Rs 2,434 crore alleged loan fraud to the Reserve Bank of India (RBI) involving the former promoters of Srei Equipment Finance and Srei Infrastructure Finance. The fraud amount is split between Rs 1,240.94 crore for Srei Equipment Finance and Rs 1,193.06 crore for Srei Infrastructure Finance. PNB has made 100% provisions for the loans. The Srei group companies, which faced insolvency proceedings since 2021 due to governance issues and defaults, have since been acquired by the National Asset Reconstruction Company Ltd (NARCL) following an NCLT-approved resolution plan. The Srei group has challenged the forensic audit findings used for the fraud classification.