Punjab National Bank (PNB) said on Wednesday it had detected some “fraudulent and unauthorised” transactions worth about $1.77 billion ( about Rs 11, 300 crore) at one of its branches in Mumbai.
In a communique to the Bombay Stock Exchange, the bank said 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 abroad.”
PNB, a state run public sector bank and country’s second-biggest state-run lender and fourth-biggest overall by assets, did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions.
“In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,” PNB said, without giving further details.
PNB shares were trading 4.1% lower by 10am, having fallen as much as 5.7% in early trading on Wednesday.With this news the stock price of PNB had lost to 9.6%.
PNB is already dealing with other allegations of fraudulent transactions. Last week, Central Bureau of Investigation (CBI) said they had launched an investigation into Nirav Modi,a billionaire Jeweller, one of the country’s richest men, dealing with other allegations of fraudulent transactions worth Rs 280 crore connected to billionaire jeweller Nirav Modi.
Further, The CBI has received two complaints from PNB against billionaire jewellery designer Nirav Modi and a jewellery company about fraudulent transactions worth Rs 10,000 crore, official sources said today.