Fraud-hit lender posts largest ever Indian bank loss

Shares in fraud-hit Punjab National Bank plunged more than 12 per cent on Wednesday after it posted the largest ever quarterly loss for an Indian lender.
PNB, the country’s second-biggest state-run bank, has been reeling since announcing in February that it had been the victim of a 135 billion rupee ($2bn) scam involving celebrity jeweller Nirav Modi.
Investigators charged Modi in absence, as well as several senior PNB officials, on Monday over the huge fraud case, which comes as the government bids to clean up debt-laden lenders.
PNB said on Tuesday it had incurred a record 134.17bn rupee net loss for the January-March quarter, having posted a 2.62bn rupee profit in the same period last year.
Shares in the firm plummeted 12.21pc to 75.50 rupees on the Bombay Stock Exchange’s Sensex index shortly after opening Wednesday.
The bank has accused Modi and his uncle and business partner Mehul Choksi of defrauding it of 2.8bn rupees, which was just part of its total losses.
PNB said Modi and Choksi had scammed it by raising credit with international branches of other Indian banks, using illegal guarantees provided by rogue PNB employees.
The bank’s fourth-quarter losses were largely incurred by having to set aside funds to pay the other banks for the illegal guarantees.
PNB said it had allocated 71.78bn rupees to pay around half the amount it owes in the three months to March 31, while setting aside the other 50pc over the next three quarters.
Modi, the third generation of his family to go into the diamond trade, is worth $1.73bn according to Forbes, placing him 85th on India’s rich list.
The 47-year-old’s high-end Nirav Modi brand has stores in several of the world’s major cities.
Indian authorities last month asked Hong Kong for help in arresting the wanted jeweller, but no developments have been made public.
India’s Central Bureau of Investigation (CBI) has arrested 19 people for enabling the defrauding of the bank with forged documents but Modi and Choksi remain untraceable.
India’s government is trying to reduce the crippling debts of the country’s embattled state banks, including the PNB.
It has announced a $32bn recapitalisation plan to help banks clean up their books ahead of a general election next year.



Accident Adventure Afghanistan Agriculture AID Airport Animals Army Arson Article automobile Banks belief birds Bureaucracy BUSINESS Calamity celebration charity Child Labour Child trafficking Christian civic Clash Climate collapse Commerce Communication Corruption Court Crime crimes culture currency Cyber crime Defence Department Derailment Development Development And Industry Devotees Diplomacy disaster Drugs Earthquake Economy Education Election Electricity Embassy Employment Energy Entertainment Environment Excavation Execution exhibition Explosion export Facility Family Famine Fashion felciation festival Finance fire flood Food Food/Agriculture food/health Foreigners Forests fraud Freight Fruit Fuel FUNERAL Hajj handicapped HANG Health Hiousing History Hotel Human Rights India Industry Infotainment int International internationl Investment journalist Judiciary justice Kashmir KIDNAPPING labour Landslide language Lawyers Legislation Leisure Lifestyle lightning literature Local Manifesto Media Medicines Migrants Minorities MIRACLE mis mishap mishaps Money Laundering Moon Murder n NAB Narcotics National Nature obituary Oppotunity Overseas pakistani Petroleum Pilgrims Police POLITICS pollution Post poverty power Prison prisoners Probe project Properties Protest Railway Religion relion Rescue Reunion Rivalry Science Seafood Security Sentence Services shemales Sikh Community smoking smuggling Social Social Media Social Welfare Space sports strike Students Suicide Suicide Attack Taxation Technology telecom Terrorism Tourism Trade Trade Union Traditions Tragedy Training transgender Transport Travel Tyranny Vacancies vehicle vendetaa Visa water Weapons weather wedding woman Women Working class youth
South Punjab News : Fraud-hit lender posts largest ever Indian bank loss
Fraud-hit lender posts largest ever Indian bank loss
Investigators charged Modi in absence, as well as several senior PNB officials, on Monday over the huge fraud case, which comes as the government bids to clean up debt-laden lenders.
South Punjab News
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy