April 06 2020
PNB finds fraudulent transactions worth $1.77 billion; shares fall
14 February 2018

The bank says fraud was detected at one of its branches in Mumbai

Shares of Punjab National Bank (PNB) fell more than 6% on Wednesday after the bank said that it has found fraudulent transactions totalling $1.77 billion in one of its branches in Mumbai.

“The Bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance... The quantum of such transactions is $1771.69 Mio (approx). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land," said the bank in a stock exchange announcement.

At 11:10am, the shares were trading at ₹151.15, down ₹10.50 or 6.50%. The shares were in the red even as the broader market was marginally in the green.

“Based on these transactions other banks appear to have advanced money to these customers abroad. In the Bank these transactions are contingent in nature and liability arising out of these on the Bank shall be decided based on the law and genuineness of underlying transactions,” added the bank statement.

Last week, the CBI registered a case against diamond merchant Nirav Modi, his wife, brother and a business partner, for allegedly cheating the PNB of over Rs. 280 crore in conspiracy with bank officials. Retired PNB deputy manager Gokulnath Shetty and staff Manoj Kharat have also been named as accused.



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