Punjab National Bank detects Rs 11,360 crore fraudulent transactions at Mumbai branch

Punjab National Bank

Picture for representation (Reuters file)

HIGHLIGHTS

  • PNB had detected “some fraudulent and unauthorised” transactions amounting to around Rs 11,360 crore.
  • PNB did not name the people involved but said it had reported the deals to law enforcement agencies.
  • It was not immediately known if the latest disclosure on fraudulent transactions was related to or separate from the Nirav Modi incident.

State-run Punjab National Bank today said it had detected “some fraudulent and unauthorised” transactions amounting to around Rs 11,360 crore at a branch in Mumbai.
The bank said the fraudulent transactions were for the “benefit of [a] few select account holders with their appar

State-run Punjab National Bank today said it had detected “some fraudulent and unauthorised” transactions amounting to around Rs 11,360 crore at a branch in Mumbai.

The bank said the fraudulent transactions were for the “benefit of [a] few select account holders with their apparent connivance”. Based on the fraudulent transactions, “other banks appear to have advanced money to these customers abroad”, Punjab National Bank added.

The bank’s stock took a hit after the detection of fraudulent accounts was made public. PNB shares were trading 6.9 percent lower than yesterday’s closing at 12.30 pm on the Bombay Stock Exchange.

PNB, the country’s second-biggest state-run lender and fourth-biggest overall by assets, did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions.

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“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,” PNB said, without giving further details.

PNB is already dealing with other allegations of fraudulent transactions. Last week, the Central Bureau of Investigation said it had launched an investigation into billionaire jeweller Nirav Modi over accusations that he and others defrauded PNB of Rs 280 crore.

It was not immediately known if the latest disclosure on fraudulent transactions was related to or separate from the Nirav Modi incident.

(With inputs from Reuters and ANI)

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