India bank reports US$1.8b fraud
MUMBAI: India’s second-largest state-run bank said yesterday it had detected fraud of almost US$1.8 billion (RM7 billion) at one of its branches, sending its shares plunging more than seven per cent.
The Punjab National Bank (PNB), one of several stateowned lenders the government is trying to clean up, said transactions worth US$1.77 billion had been made “for the benefit of a few select account holders with their apparent connivance”.
It said they had occurred at a single branch here and had been reported to enforcement agencies for further investigation.
Shares in PNB plummeted 7.45 per cent on the Bombay Stock Exchange’s benchmark Sensex index in late morning trade.