The development comes less than two weeks after Punjab National Bank (PNB) reported a borrowing fraud of Rs 3,805 crore in BPSL's account.
"In the accounts of the company (BPSL), PSB has already made provisions amounting to Rs 189.35 crore as per prescribed prudential norms," it said.
"The rating reflects strong and proven support from the shareholders, BPSL
's strong market position in the region, and strong profitability indicators.
An affiliate interest group has been established, which allows major user groups such as trade bodies representing the corporate sector to represent their views directly to the BACS (BPSL) board.
--(2005b): BPSL Innovation Working Group report, Office of Fair Trading, London (available via www.oft.gov.uk).
The Allahabad Bank fraud has come to light within a week of Punjab National Bank reporting another fraud worth Rs 3,805.15 crore by BPSL to the RBI.
"We have to inform you that on the basis of forensic audit investigation findings and CBI filing FIR on suo moto basis against the company and its directors, alleging diversion of funds from banking system by the bank's borrower namely Bhushan Power and Steel Ltd (BPSL), a fraud of Rs 1774.82 crore has been reported by the bank to the RBI," Allahabad Bank said in a statement.
At the same time, the agency confirmed the A-(ind) rating on BPSL
's INR2bn (USD43.1m/EUR30.8m) optionally convertible bonds programme and INR 54 billion long-term bank loans.
"In the accounts of the company (BPSL
), the bank has already made provisions amounting to Rs 1,932.47 crore as per prescribed prudential norms," it said.
The report said that in 2011-12, BPSL
gave a loan of Rs 5.64 crore to Allegeny.