One of the prominent banks of Indian government Punjab National Bank is in news for all wrong reasons. On Wednesday it had detected some “fraudulent and unauthorized” transactions worth about $1.8 billion (more than Rs 11,500 crore) at one of its branches in Mumbai. On confronting about the same the bank said to Bombay Stock Exchange that,
“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.”
However, PNB has not revealed the name of the people who are 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. The country is in shock as it is the second incidence in less than 10 days where a bank has been defrauded.
Earlier, 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. Joint secretary in the department of financial services Lok Rajan said,