Punjab National Bank (PNB) has stated that it has found fraudulent transactions totalling over $1.77 billion in one of its branches in Mumbai.
This was followed by its shares falling more than 6% on Wednesday.
The Bank in its statement added that,“The bank has detected some fraudulent and unauthorised transactions [messages] in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance… The quantum of such transactions is $1771.69 million [Rs 11,360 Crore]. The matter is referred to the law enforcement agencies to examine and book the culprits as per the law of the land”.
Bank has said that,“Based on these transactions, other banks appear to have advanced money to these customers abroad. 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”.
Last week, CBI had registered a case against diamond merchant Nirav Modi, his wife, brother and a business partner, for allegedly cheating the PNB of over Rs. 280 crore in conspiracy with the bank officials.
Retired PNB Deputy Manager Gokulnath Shetty and Staff Manoj Kharat have also been named as accused in the case.