PNB stock cracks 6% to hit 20-month low after Firestar files for bankruptcy

Shares of Punjab National Bank slumped over 6 per cent and fell to a 20-month low on the bourses after Nirav Modi's Firestar Diamond filed a bankruptcy plea in the United States (US) and a local court in Mumbai issued summons to the accused diamantaire.

Meanwhile, media reports have surfaced that Nirav Modi is not coming back to India anytime soon.

Reacting to the developments, the stock today fell to an intra-day low of Rs 92, down 6.45 per cent over its previous closing price on BSE. The stock has fallen to a level last seen on June 20, 2016.

Since February 14, when the scam broke, the stock has fallen as much as 37 per cent on BSE.

On the NSE as well, the stock touched a fresh 52-week low of Rs 92.

Nirav Modi's international jewellery business Firestar Diamond filed a bankruptcy plea in the US.

Furthermore, a local court in Mumbai has issued summons to the diamantaire in connection with an income tax evasion probe against him and his companies.

PNB has said that the alleged fraud perpetrated by jewellers Modi and Mehul Choksi may be around $2 billion, over $204 million more than previously estimated.

Shares of Gitanjali Gems continued to lose ground and fell 5 per cent to its 52-week low level yet again on BSE and NSE.