In­dia bank re­ports US$1.8b fraud

New Straits Times - - BUSINESS / WORLD -

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.

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