When dealing with money and related documents and transactions, be it big or small, one should be cautious.
Punjab National Bank (PNB) has said that it has found fraudulent transactions totaling over $1.77 billion in one of its branches in Mumbai. This was followed by its shares falling more than 6% on Wednesday
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“The bank has detected some fraudulent and unauthorized 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 [approx]. The matter is referred to the law enforcement agencies to examine and book the culprits as per the law of the land,” said the bank in a stock exchange announcement.
At 11:10 a.m., the shares were trading at ?151.15, down ?10.50 or 6.50%. The shares were in the red even as the broader market was marginally in the green.
“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,” the statement said.
Last week, the CBI registered a case against diamond merchant Nirav Modi, his wife, brother and a business partner, for allegedly cheating the PNB of over Rs. 280 crores in conspiracy with bank officials. Retired PNB deputy manager Gokulnath Shetty and staff Manoj Kharat have also been named as accused in the case.
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