PNB detects $1,772 million fraudulent transactions; stock slips 7%

The stock slipped 7% to Rs 150 after the state-owned bank said that it had detected some fraudulent and unauthorised transactions worth about Rs 1.13 trillion ($1771.69 million approx).

Punjab National Bank (PNB) has slipped 7.4% to Rs 150 on BSE in intra-day trade after the state-owned bank said that it had detected some fraudulent and unauthorised transactions worth about Rs 1.13 trillion ($1,771.69 million approx) at one of its branches in Mumbai.

“The Bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad,” PNB said in a regulatory filing.

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 quantum of such transactions is USD 1,771.69 Million (approx). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The Bank is committed to clean and transparent banking, it added.

At 11:13 AM; the stock was trading at Rs 151, down 6.9% on BSE, as compared to 0.07% rise in the S&P BSE Sensex. The trading volumes on the counter surged 1.5 times with a combined 23.98 million shares changed hands on BSE and NSE so far.