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PNB suspends deputy manager, 9 others after uncovering Rs 110-bn fraud

Earlier in the day, the state-owned lender said that they had cracked a case of swindling, which was contingent in nature

ANI  |  New Delhi [India] 

PNB
Photo: Kamlesh Padnekar

The (PNB) on Wednesday suspended its ten officials, including a branch Deputy Manager, in a fraudulent transaction case that also involved noted jewellery designer Nirav Modi.

The suspension comes following the bank uncovering fraudulent and unauthorised transactions worth $1771.69 million (Rs 110 billion) from its branch in Mumbai.

Earlier in the day, the state-owned lender said that they had cracked a case of swindling, which was contingent in nature.

"The bank has detected some fraudulent and unauthorised transactions in one of its branches in Mumbai for the benefit for a few select account holders with their apparent connivance. Based on these transactions, other appear to have advanced money to these customers abroad," an official statement read.

Few days ago, the Central Bureau of Investigation (CBI) had booked the noted jewellery designer Nirav Modi, his brother Nishal Modi and some officials for allegedly cheating the bank to the tune of more than Rs 2.8 billion (Rs. 280 crore).

Meanwhile, Secretary of the Department of Financial Services (DFS), Rajiv Kumar, assured that all necessary action would be taken in the case.

"This is part of NPA resolution reforms agenda. Cleaning of is the top priority of the government, and it directed all the on NPA clean up to help honest borrowers avail loans.

After having recapitalized, we will ensure all are cleaned up. This is a one-time cleaning exercise. Whatever it takes, we will do it," he told ANI.

First Published: Wed, February 14 2018. 16:29 IST
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