In February 2018, the Rs 13,500-crore scam involving diamantaires Nirav Modi and Mehul Choksi had come to light at the PNB.
In a regulatory filing on Saturday, PNB said that BPSL had misappropriated funds and manipulated books of accounts to raise funds from consortium lender banks.
"On the basis of forensic audit investigation findings and the CBI filing a suo motu FIR against the company and its directors alleging diversion of funds from banking system, a fraud of Rs 3,805.15 core is being reported by bank to the RBI (Reserve Bank of India)," said the statement.
The PNB noted that it has already made provisions amounting to Rs 1,932.47 crore in its company accounts, as per the prescribed prudential norms.
The Rs 3,805.15-crore in the NPA account of Bhushan Power & Steel Ltd, included domestic exposure of Rs 3,191.51 crore at the bank's large Corporate branch at Chandigarh, overseas exposure of $49.71 million (around Rs 345.74 crore) at its Dubai branch and $38.51 million (around Rs 267.90 crore) at the Hong Kong branch, PNB said.
It is one of the first 12 accounts identified by the RBI for insolvency proceedings.
"At present, the case is in advance stage at the National Company Law Tribunal (NCLT) and the bank expects good recovery in the account," PNB said.
( With inputs from IANS )