PNB fraud case not out of control: Finance ministry official

NEW DELHI: The finance ministry on Wednesday sought to allay worries over the Rs 11,300-crore fraud case at Punjab National Bank, saying the case not "out of control" and it's taking action on this appreciate.
"I don't think this is out of control or too big a worry at this point. That is my broad sense," Joint Secretary in Department of Financial Services Lok Rajan said on the sidelines of an tournament right here.

Earlier within the morning Punjab National Bank (PNB) disclosed that it has detected some fraudulent transactions with financial implication of $1.171 billion (about Rs 11,334.4 crore) and the matter has been referred to law enforcement companies for the restoration.

Based on these transactions, other banks appear to have advanced cash to those customers abroad, it said.

In the bank these transactions are contingent in nature and legal responsibility bobbing up out of those on the bank will probably be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approx), it said.

"The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank is committed to clean and transparent banking," PNB said.

This is the second one prevalence in lower than 10 days the place a bank has been defrauded. On February 5, the CBI booked billionaire diamond service provider Nirav Modi, his wife, brother, and a business spouse for allegedly cheating Punjab National Bank of over Rs 280.70 crore throughout 2017.

The CBI has acted on a complaint from the PNB, which alleged that Modi, his brother Nishal, wife Ami and Mehul Chinubhai Choksi were in conspiracy with officials of the bank and cheated it, inflicting "wrongful loss".
PNB fraud case not out of control: Finance ministry official PNB fraud case not out of control: Finance ministry official Reviewed by Kailash on February 14, 2018 Rating: 5
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