Banks may take a hit of at least Rs 176 bn from PNB scam: I-T Dept

But the total hit to Indian banks 'may well exceed' that amount, the I-T department said in its note

Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $1.77 billion fraud case, the income tax department said on Saturday.

As of March 2017, banks had extended loans and guarantees worth Rs 176.32 billion ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters.

But the total hit to Indian banks "may well exceed" that amount the department said in its note.

($1 = 64.2400 Indian rupees)