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How Punjab National Bank became a victim of India's biggest bank fraud

The finance ministry has issued an advisory to all banks to review their large customer exposures, according to media reports

Reuters  |  Mumbai 

India's Punjab National Bank, the second-biggest state-run lender, stunned the country's financial sector when it announced this week it had discovered fraudulent transactions worth $1.77 billion at a single branch in Mumbai. The fraud, by far the biggest ever detected by an Indian bank, comes to light at a time when lenders - especially the state-run banks - are hobbled by $147 billion in soured loans on their books, a problem that has choked new lending and hurt the country's economic recovery. Despite tight fiscal conditions, the government recently extended a $14 ...

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First Published: Thu, February 15 2018. 22:36 IST