Stocks of Punjab National Bank have slipped by over 5% after the bank discovered frauds to the tune of $1.771 billion (over Rs 10000 crore). The fraud is nearly eight times the size of the banks net income in 2017 and shockingly originated from one PNB branch. The bank had posted net incomes of $206 million in 2017. The fall has been the steepest in over two weeks. The banks scrips on the Bombay Stock Exchange are down over 7% at 11:10 AM. At the time of pre-opening, the scrip was trading at Rs 159. At the time of writing this story, the scrip was down to Rs 150.20.According to the banks regulatory filings, The bank has detected some fraudulent and unauthorized transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance.The case involves unauthorized transactions worth nearly Rs 1.13 lakh crores from the banks Mumbai branch. The transactions were for the benefit of a few select account holders with their apparent connivance and that based on these transactions other banks appear to have advanced money to customers abroad. The third largest public sector lender is at the moment scrutinizing the case for additional details. The bank has so far referred the case to enforcement agencies, and said that liabilities arising to the bank will be decided on law and genuineness of the transactions. The bank had reported another fraud a month ago, where a jeweler acquired fraudulent letters of undertaking worth Rs 280 crore. It is unclear whether the two cases were linked..
Stocks of PNB take a hit after bank finds inside angle in $1.7 billion fraud. This article is published at 14 February 2018 11:32 from Sify Indian Business and Finance News, click on the read full article link below to see further details.
Stocks, take, after, bank, finds, inside, angle, billion, fraud