Government-run Punjab National Bank said on Wednesday it had detected some "fraudulent and unauthorised" transactions worth about $1.8 billion (more than Rs 11,500 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.¡±
AFP
PNB has not named 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.
This is the second incidence in less than 10 days where a bank has been defrauded. On 5 February, the CBI booked billionaire diamond merchant Nirav Modi, his wife, brother, and a business partner for allegedly cheating Punjab National Bank of over Rs 280.70 crore during 2017.
AFP
The news has, however, spread panic among investors, resulting in a 10 percent dip in its share prices.
The finance ministry, however, said the case is not ¡°out-of-control¡± and it is taking action in this respect.
¡°I don¡¯t think this is out of control or too big a worry at this point. That is my broad sense,¡± joint secretary in department of financial services Lok Rajan said.