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Fraud-hit PNB rapped for not making timely regulatory disclosures

Reuters  |  MUMBAI 

(Reuters) - India's state-owned (PNB) has received a warning letter from the country's markets regulator for failing to make timely disclosures to the stock exchanges about a sprawling $2 billion

The compliance and monitoring arm of the (SEBI), in a letter on May 15, noted delays of one to six days on the part of the lender in making disclosures about the fraud, PNB said in a securities filing on Thursday.

PNB, India's second-largest state-run bank, said in February two had defrauded it of more than $2 billion by raising credit from overseas branches of other Indian banks via illegal guarantees issued by rogue PNB staff over several years.

The had initially said it had been defrauded of only 2.8 billion rupees, or about $41.3 million, before going on to disclose what has become the largest ever loan case in Indian history.

PNB had filed a police complaint about the on Jan. 29, but disclosed the matter to the regulator only on Feb. 5. Its shares fell more than 10 percent between that period.

In its letter, the securities regulator said it viewed the non-compliance "seriously" and warned PNB to be "cautious in future to ensure compliance".

(Reporting by and Devidutta Tripathy; Editing by Himani Sarkar)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 15:38 IST
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