PNB finds Rs 11400cr fraud, shares crash

PNB finds Rs 11400cr fraud, shares crash

PNB finds Rs 11400cr fraud, shares crash

Punjab National Bank, the second largest public sector bank in India, has detected a $1.8 billion fraud in one of its branches here, the bank said in a regulatory filing to the stock exchanges February 14.

A day after high-level fraudulent practice to the tune of $1.8 billion in one of the Punjab National Bank's Mumbai branch was reported to the stock exchanges, Sunil Mehta, MD and CEO of the bank, said it "will not spare anyone" involved in the wrongdoing.

The bank said in a regulatory filing 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 these customers overseas".

The bank didn't name any person or company, but it had lodged a complaint with CBI on January 31 naming billionaire diamond merchant Nirav Modi, his wife Ami Modi, brother Nishal Modi and his maternal uncle Mehul Choksi in a Rs 280-crore fraud. The agency is already probing Nirav for alleged cheating and fraud involving Rs 280 crore at a PNB branch.

Solar Eclipse February 2018: Where to watch it from?
This eclipse will begin at 12.25 pm on February 15 and will stay till 4 am in the morning according to Indian Standard time. Total solar eclipse and partial solar eclipse are different as in the latter only part of the solar disk is obscured.

Foreign bank branches too are under investigation.

"Based on these transactions, other banks appear to have advanced money to these customers overseas", Punjab National Bank added. Individuals in PNB said the extortion became known after an official, named by CBI, resigned the previous summer finishing the unsanctioned rollover of letters of undertaking, in light of which the organizations were raising assets overseas.

Nirav's fraud was revealed in the third week of January, when his companies sought a fresh loan from PNB, which is India's second-largest state-run bank.

Based on these fraudulent LoUs, Nirav Modi firms took loans from overseas branches of other Indian lenders like Allahabad Bank and Axis Bank to pay their suppliers.

Winter Olympics: Chloe Kim wins gold in snowboard halfpipe
She secured her spot with a strong second run that had flawless pacing and control in the halfpipe at Phoenix Snow Park. According to International Olympic Committee rules, there is no specific age limit to compete in the Olympic Games.

The fall dragged the National Stock Exchange's Nifty PSU bank index down 2 percent on Thursday, after it fell as much as 2.8 percent on Wednesday.

ED sources said the agency filed the case under the Prevention of Money Laundering Act (PMLA) after going through the CBI FIR.

Congress Party on Thursday lambasted Prime Minister Narendra Modi on Nirav Modi's fraud case asserting that the "government couldn't do anything" despite the tip-off in 2016 of the loot."Guide to looting India by Nirav Modi-1". The bank reported a net worth of Rs 38,096.45 crore for FY 17. The RBI is expected to inspect the books of PNB and other banks.

Corporate lawyer and senior partner in legal firm ALMT Legal, Hitesh Jain, said everything depends on how the letters of understanding have been worded. "Around 30 banks have lost money due to this scam", he said.

Valentine's Day and its sordid history
While some enjoy the attention from their loved ones, there are others who find the entire process to be inefficacious. With Valentine's Day lurking just around the corner, it's time to focus on love for your spouse or significant other.

Related news