PNB stock plunges 9% as $1.7-billion branch fraud surfaces

Shares of Punjab National Bank (PNB) felt the squeeze on Wednesday, down nearly 9 per cent, after the public lender reported fraudulent and unauthorised transactions in favour of select account holders with apparent connivance at one of its Mumbai branches.

The scrip opened at Rs 160 and has hit high and low of Rs 160 and Rs 144.70, respectively, eventually closing 9.81 per cent down at Rs 145.80 on BSE.

“The quantum of such transactions is $1,771.69 million. The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land,” PNB said in a BSE filing today.


It added that based on these transactions other banks appear to have advanced money to these customers abroad. 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.

Equity benchmark the Nifty50 index closed 39 points, or 0.37 per cent, down at 10,501, while the BSE Sensex shed 145 points, or 0.42 per cent, to close at 34,156.