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 12:58:25 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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