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PNB stocks slump for second day, plunges almost 12%

IANS  |  Mumbai 

Shares of the (PNB) on Thursday continued to drop for a second consecutive day -- closing almost 12 per cent lower -- after a $1.8 billion fraud was detected in one of its branches in

Its scrips dipped by 11.97 per cent to close at Rs 128.35 per share, lower by Rs 17.45 from the previous close at Rs 145.80.

Stocks of jewellery companies like and too declined after authorities blamed for the fraud.

Stocks of Gitanjali Gems, the luxury jewellery brand promoted by Modi's maternal uncle Mehul Choksi, plunged almost 20 per cent. Scrips of fell 5.31 per cent on the

On Wednesday, -- the second largest in -- informed the stock exchanges through a regulatory filing that it has detected a $1.8 billion fraud in one of its branches in

In the filing, put the quantum of fradulent transactions at $1,771.69 million (around Rs 11,515 crore), which is equivalent to eight times the bank's net income of about Rs 1,320 crore ($206 million).

The bank's shares had plunged drastically on Wednesday following the regulatory filing to close lower by 9.81 per cent at the

The fraud, which includes money-laundering among others, concerns the Firestar Diamonds group in which the of Investigation last week booked Modi, his wife Ami, brother and uncle Choksi.

On Thursday, the launched a nationwide raid on the offices, showrooms and workshops of

Sunil Mehta, MD and of said the company "will not spare anyone" involved in the wrongdoing.

"We are known for The fraud started in 2011. We have brought it under the notice of regulatory and law enforcement agencies as soon as we came to know about it. We will not spare anyone involved in the fraudulent practice," Mehta told reporters on Thursday.



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

First Published: Thu, February 15 2018. 16:26 IST