If this news is true, India’s biggest ever fraudulent transactions detected at one of the branch in Mumbai of State run Punjab National Bank. Fraudulent and unauthorized” transactions worth about Rs 1.13 lakh crore detected at one of its branches in Mumbai.
PNB has accepted the frauds in a regulatory filing and informed that the transactions were made to provide benefit to sew selected account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad.
Read More – Are Your Money Safe in PPF ?
Punjab National Bank (PNB) did not name the list of accounts or groups referred but expressed it had informed the transactions to collection enforcement agencies and would decide whether it faces any susceptibility becoming out of the transactions later. It is still unknown, the impact of these fraudulent transactions on profitability of bank. Further, Banks has added that 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. There is no information on size of loans and collateral or whether enforcement agencies/bank would able to recover the losses or not.
PNB already in trouble on allegations of fraudulent transactions into billionaire jeweller Nirav Modi case, where he is accused of defrauded PNB of Rs 282 crore. Earlier, PNB and 12 other banks were fined for violating rules on some $1 billion of foreign-exchange deals.
Punjab National Bank’s share tumbled down by more than 5% on stock exchanges.
News & information was reported by TOI & Money control.