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Nifty, Sensex fall; bank stocks slip as RBI bans LoUs

Reuters 

By Krishna V Kurup(Reuters) - Indian shares fell on Wednesday after a central bank directive banning issuance of letters of undertaking (LoU) by lenders hit bank stocks while revelations by Punjab National Bank of additional exposure in an alleged fraud further dampened sentiment.The Reserve Bank of India (RBI) barred all lenders from issuing letters of undertaking (LoU) - a form of credit guarantee at the heart of a major fraud that shook the financial sector last month. The instruments are all forms of trade finance often used by importers to fund their overseas purchases.Punjab National ...

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First Published: Wed, March 14 2018. 11:45 IST
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