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PNB share price slips following detection of Rs 10,000 crore fraud

Punjab National Bank said these transactions were contingent in nature and liability arising out of these on the bank would be decided based on the law and genuineness of underlying transactions.

By: ENS Economic Bureau | Mumbai | Updated: February 14, 2018 12:58 pm
PNB, PNB Maestro debit cards, debit cards, debit cards block, punjab national bank, indian express news, india news, business news, banking The share price of Punjab National Bank (PNB), the country’s third-largest lender, on Wednesday slipped in early trade. (File Photo)

The share price of Punjab National Bank (PNB), the country’s third-largest lender, on Wednesday slipped in early trade after the bank, in a regulatory filing, said it had detected some fraudulent transactions worth $1,771.7 million (Rs 10,000 crore) in its Mumbai branch.

“The bank has detected some fraudulent and unauthorised transactions in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad,” said PNB to BSE Ltd. The bank said these transactions were contingent in nature and liability arising out of these on the bank would be decided based on the law and genuineness of underlying transactions. Also Read: Punjab National Bank detects Rs 10,000 crore fraud at Mumbai branch, may spread to other lenders as well

“The matter was already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank is committed to clean and transparent banking,” said PNB. At 9.43 am, the stock price of PNB was at Rs 155.15 a piece, down by 4.02 per cent on the BSE.

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  1. S
    Susant Sahoo
    Feb 14, 2018 at 10:55 pm
    We should not blame govt for every cause.
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    1. Firstchoiceipo Analysis
      Feb 14, 2018 at 12:13 pm
      Fraud fraud fraud - first Lalit Modi and now Nirav Modi.
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      1. Chengalvala Srinivas
        Feb 14, 2018 at 12:06 pm
        Banks have been looted by politicians, bureaucrats and their crony industrialists for decades and higher officials of banks have earned fortune by this method and only during Demo public could see the face of corruption in banks and only now it looks like clean up has started.
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          seshadri iyer
          Feb 14, 2018 at 11:59 am
          very serious issue where is the guarantee of public money matter needs to be investigated by a supreme court sitting judge and all psb banks and private banks accounts should be thoroughly checked by reserve bank otherwise innocent public will loose their hard earned income, hope the government in Delhi will take some steps in the right direction to arrest rising frauds in banks/npas etc, after all it is public and honest income tax payers money which cannot be taken lightly
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          1. Jaideep
            Feb 14, 2018 at 11:11 am
            Ten thousand Crore scam in ONE bank . Many such fraudulent transactions have been used to bail out the corrupt during demonetization , with the blessings of the Central Govt . Those who imagine that the modi Govt is serious about fighting corruption need to remember - Sharad Pawar was awarded the Padma Vibhushan (India's second-highest civilian award) last year .
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            1. Chengalvala Srinivas
              Feb 14, 2018 at 12:08 pm
              But at least Modi has started the clean up process, of course Pawar along with PC will win the most corrupt politician award, on any given day.
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              1. Jaideep
                Feb 14, 2018 at 1:24 pm
                Mr.Srinivas , if you believe modi has started the clean up process , then why did the Modi Govt award Sharad Pawar , India's second highest civilian award last year ? That is the simple question that you are unwilling to answer.
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                  Aswartha rao
                  Feb 14, 2018 at 7:22 pm
                  Cleanup process is a banks regulatory process..whats modi has to do in that..just dont pass credit to anybody..if this goes on..tmrow u will say..we r breathing becas of modi..
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