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Punjab National Bank Mumbai Branch Reports Fraud 8 Times Its Net Income

14 February 2018

The PNB shares fell as much as 7.5% as of 11:20 am in Mumbai, poised for the steepest drop since October, added the Bloomberg report.

Natco Pharma tumbled 4.2 percent amid news of USFDA inspection at its API facility in Mekaguda, near Hyderabad.

Incidentally the fraudulent transactions detected by the bank is just short of Rs 4,000 crore less than the total income that the bank declared in the third quarter (Q3) of this FY17-FY18.

The CBI has acted on a complaint from the PNB, which alleged that Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi, all partners of Diamon R US, Solar Exports, Stellar Diamonds, were in conspiracy with officials of the bank and cheated it, causing "wrongful loss", the officials said.

Mumbai: Punjab National bank, India's second-largest government bank, reported today that $1.8 billion or over Rs 11,000 crore of taxpayers' money had been illegally transferred overseas to select customers from a single branch in Mumbai.

"Based on these transactions other banks appear to have advanced money to these customers overseas". The bank's scrips on the Bombay Stock Exchange ended down 10.39% at Rs 144.85.

This is the second incidence in less than 10 days where a bank has been defrauded.

"All the officials of PNB suspended today are of the same branch".

No official comments were available from the agency on the issue or the nature of the transaction.

Secretary of the Department of Financial Services, Rajiv Kumar promised that all that can be done in the case will be done.

It's also unclear if the fraud is linked to another case PNB had reported earlier this month, where a jeweler allegedly acquired fraudulent letters of undertaking worth 2.8 billion rupees from PNB in order to obtain loans.

The bank's stock took a hit after it announced the detection the fraud.

Separately, he told ANI that "this is part of NPA (Non-Performing Assets) resolution reforms agenda". This is a one-time cleaning exercise.