PNB reports Rs10,000-cr fraudulent transactions in its Mumbai branch

Punjab National Bank (PNB) has detected fraudulent transactions of over Rs10,000 crore ($1.7 billion) in one of its branches in Mumbai, the bank informed the stock exchanges on Wednesday.

In a communique to the BSE, the bank said its liability will be determined after taking a closer look at these transactions and that the matter has been referred to law enforcement agencies.

''The bank has detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad,'' PNB said.

''The matter was 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,'' said PNB.

''These transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions,'' the statement added.

Punjab National Bank had reported an 11 per cent increase in its fiscal third quarter profit at Rs230 crore.

At 9.43 am, the stock price of PNB was at Rs155.15 a piece, down 4.02 per cent on the BSE.

Shares of Punjab National Bank (PNB), the country's third-largest lender, nosedived by up to 6 per cent in intraday trade today after the bank, in a regulatory filing, said it had detected some fraudulent transactions worth $1,771.7 million (Rs 10,000 crore) in its Mumbai branch.