India’s state-run lender Punjab National Bank (PNB) has detected several fraudulent and unauthorised transactions conducted at one of its branches in Mumbai. The quantum of such transactions amounts to nearly $1.77bn.
In a regulatory filing, the bank noted that these transactions were made for a few select account holders with their apparent connivance.
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It stated that ‘based on these transactions other banks appear to have advanced money to these customers abroad’.
PNB did not mention the name of the people associated with it but stated that all liability arising out of these transactions on it will be decided according to the law and on the genuineness of the disputed transactions.
Currently, PNB is also dealing with other such fraudulent transaction allegations.
Following the announcement, PNB shares traded 7.05% lower on the Bombay Stock Exchange (BSE).
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By GlobalDataCommenting on the development, financial services secretary Rajiv Kumar stated that it was an isolated case dating back in 2011.
Indian federal agency Central Bureau of Investigation has also started probe into this matter, while 10 PNB employees associated with this case have been suspended.
