Punjab National Bank shares slide for third day

MUMBAI (Reuters) - Punjab National Bank fell as much as 3.8 percent on Friday, sliding for a third consecutive session as the country's second-biggest state-run lender continued to reel after saying it had been hit with a $1.77 billion fraud.

Local media reported on Friday that the Reserve Bank of India has directed Punjab National Bank to pay the entire 113 billion rupees ($1.77 billion) owed to counterparty lenders, citing bankers aware of the development.

PNB shares were down 1.75 percent by 0402 GMT after sliding 20 percent over the previous two sessions.

($1 = 63.8375 Indian rupees)

(Reporting by Rafael Nam; Editing by Swati Bhat)