MUMBAI: Indian state-run Punjab National Bank said on Wednesday it had detected some fraudulent and unauthorised transactions worth about 1.77 billion at one of its branches in Mumbai. The bank said in a regulatory filing the transactions were for the benefit of a few select account holders with their apparent connivance and that based on these transactions other banks appear to have advanced money to these customers abroad. PNB the country s second-biggest state-run lender and fourth-biggest overall by assets did not name the people involved but said it had reported the deals to law enforcement agencies and would evaluate later whether it faces any liability arising out of the transactions. In the bank 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 PNB said without http://promodj.com/shopozoind giving further details. PNB shares were trading 4.1 percent lower by 0420 GMT having fallen as much as 5.7 percent in early trading. The main Mumbai market index was little changed. PNB is already dealing with other allegations of fraudulent transactions. Last week Indian federal agents said they had launched an investigation into billionaire jeweller Nirav Modi one of the country s richest men over accusations that he and others defrauded PNB of 44 million. It was not immediately known if the latest disclosure on fraudulent transactions was related to or separate from the previous incident. Four top PNB executives contacted by Reuters did not immediately respond requests seeking comment beyond the stock exchange filing. ( 1 = 64.1000 Indian rupees. Case update: Reacting to the news banking secretary Rajiv Kumar said that the case was an isolated one that dated back to 2011. 10 employees of the bank have been suspended and the Central Bureau of Investigation has begun probe. This will help the government recognize bad assets and also clean up Punjab National Bank. The government has also asked all other banks to undertake detailed clean-up procedures which the government itself will monitor. The Central Bureau of Investigation on Monday booked billionaire jeweller Nirav Modi for allegedly cheating Punjab National Bank of Rs 280.7 crore in 2017 PTI reported. Modi s brother Nishal and their business partner Mehul Chinubhai Choksi were among the four people booked in the case. Officials said the Central Bureau of Investigation acted on a complaint filed by the Punjab National Bank. The bank had also claimed that some of its own officials were involved in the cheating case.Nirav Modi is a designer and the founder of Firestar Diamond which has boutiques across three continents NDTV reported. In January Income Tax officials had raided his offices in Delhi Surat and Jaipur. State-owned Punjab National Bank (PNB) today raised interest rate on bulk deposits of over Rs 1 crore by up to 1.35 per cent. Following the revision interest rate on term deposit of 46-179 days has been increased by 1.35 per cent to 6.25 per cent effective today. Besides interest rate for term deposit of 180 days to less than 1 year has been revised upward to 6.25 per cent from the earlier rate of 5 per cent PNB said in a statement. In the maturity bucket of one year and above the interest rate has gone up by 0.75 per cent. Earlier this week the country s largest lender State Bank of India (SBI) hiked interest on bulk deposits of over Rs 10 crore by up to 140 basis points. The bank had last raised deposit rates revisions on which generally precede similar moves on the lending side by up to 1 percentage point in November. At least three banks have already hiked their lending rates last month. On tenors from 1 year to 455 days deposit SBI increased the interest rates to 6.25 per cent from the earlier 5.25 per cent. For tenors from two years to up to 10 years the rates have been revised upwards to 6 per cent from 5.25 per cent earlier. .story-content span .story-content p .story-content div color:#000!important;font-family: open sans Arial!important;font-size:15px!important ALSO READ How effective is PNB s war room? PNB to close or relocate up to 300 branches NPA provisioning effect: Union Bank UCO in red; PNB net sees rise in Q2 How sustainable is the PNB stock rally? span.p-content div id = div-gpt line-height:0;font-size:0 Punjab National Bank s net profit rose 11.1 per cent to Rs 2.3 billion in the third quarter of the financial year due to higher provisioning for bad loans. PNB had earned a net profit of Rs 2.1 billion in the year-ago quarter and Rs 5.6 billion in the quarter ended September 2017 when the growth rate stood at 2 per cent. Provisions during the third quarter grew 56 per cent to Rs 40.1 billion against the year-ago period dragging the profitability of the public-sector bank which witnessed a huge jump of 52.7 per cent in its operating profit to Rs 42.4 billion. The increase in operating profit was mainly on account of asset sales PNB Managing Director and Chief Executive Officer Sunil Mehta said in a press conference adding that incremental provisioning of around Rs 11 billion affected treasury. Banks are required to keep aside a portion of expected bad loans out of their profits termed as provisioning. PNB s net interest income stood at Rs 39.9 billion up 6.9 per cent from Rs 37.3 billion in the year-ago period but lower by 0.6 per cent against Rs 40.1 billion in the previous quarter this year. The bank s bad loans in terms of the non-performing assets declined marginally. Gross NPAs came down to 12.1 per cent from 13.3 per cent and 12.5 per cent in the previous two quarters respectively. Net bad debt assets inched down from 8.4 per cent at the end of September to 7.5 per cent at the end of December 2017. The bank s fresh slippages the amount of loans that turned from good to bad in the third quarter decreased to Rs 112 billion from around Rs 147 billion in the year-ago period. It witnessed a robust loan growth of 17 per cent from 4.5 per cent in the previous quarter. Our credit growth is robust. We witnessed a 20 per cent growth in domestic credit which is better than the private sector (banks) Mehta said. The uptick in credit growth came mainly from retail sector loans which rose 22.2 per cent at the end of December 2017. Mehta said the amount that the government would infuse into PNB as part of its recapitalisation programme would be used to support growth in business rather than going for higher haircuts. Capital will of course provide us an opportunity to take more haircuts but we may not like to take that. We want to use the capital for growth and not for taking haircuts and that s what we are planning for. Under the recapitalisation plan PNB will get Rs 54.7 billion as capital infusion from the Centre second-highest share among healthier banks. Last year the Union government had announced a two-year Rs 2.11 trillion road map to strengthen public sector banks hit by bad debts. .story-content span .story-content p .story-content div color:#000!important;font-family: open sans Arial!important;font-size:15px!important ALSO READ How effective is PNB s war room? Punjab National Bank Q3 net profit up 11.1% at Rs 2.3 bn bad loans decline PNB to close or relocate up to 300 branches Why the Street is positive on PNB Housing despite rich valuations NPA provisioning effect: Union Bank UCO in red; PNB net sees rise in Q2 span.p-content div id = div-gpt line-height:0;font-size:0 In what may turn out to be one of the biggest scams in Indian corporate history Punjab National Bank has detected fraudulent transactions worth around Rs 110 billion from one of its Mumbai branch allegedly by diamond merchant Nirav Modi his relatives and business partner Mehul Choksi during this year. PNB share prices fell around 7% in the early trade on Wednesday morning after the bank reported fraudulent transactions worth 1.77 billion to Bombay Stock Exchange. 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 Delhi-based public sector bank said in its BSE filing. The bank said that the transactions are contingent in nature and liability arising out of these on the bank will be decided based on the law and genuineness of underlying transactions. 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 PNB said. On February 5 the PNB had said in a statement that its preliminary investigations showed that it had come across suspected fraud amounting to Rs 2.8 billion. Punjab National Bank has come across certain fraudulent Letter of Undertakings issued by two of its employees namely Gokulnath Shetty and Manoj Hanument Kharat at Brady House Branch Mumbai in connivance with firm belonging to Nirav Modi Nishal Modi Ami Nirav Modi and Mehul Chinubhai Choksi partners of M/S Diamond R US M/S Solar Exports and M/S Stellar Diamond the bank had said in a statement. The bank immediately referred the case to Central Bureau of Investigation. On unearthing these fraudulent activities the bank rejected the request for roll-over and decided to inform the regulator and CBI for investigation the bank had said. Acting on the complaint the CBI filed an FIR against businessmen Nirav Modi his wife Ami his brother Nishal and Mehul Choksi. The public servants committed abuse of official position to cause pecuniary advantage to Diamond R US Solar Exports Stellar Diamonds and wrongful loss of Rs 2.8 billion to Punjab National Bank during 2017 the FIR by CBI has alleged. The CBI registered the FIR under the Indian Penal Code (IPC) sections related to criminal conspiracy cheating and provisions of Prevention of Corruption Act against the four. The firms however contested this saying that they availed this facility in the past also the complaint now a part of the FIR has alleged. However branch records did not reveal details of any such facility granted to the said firm it said. Mehul Choksi had said in a statement said he retired from Diamond R US as partner in 1999. By: ENS Economic Bureau | Mumbai | Published: February 7 2018 1:56 am Public sector lender Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 230 crore in the December quarter of FY18 up 11.1 per cent from the same period last year. (Express Archive) Related News Punjab National Bank detects Rs 10 000 crore fraud at Mumbai branch may spread to other lenders as wellPNB share price slips following detection of Rs 10 000 crore fraudRBI s new norms to speed up resolution of stressed assetsPublic sector lender Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 230 crore in the December quarter of FY18 up 11.1 per cent from the same period last year. The profits were buoyed by a rise in other income and improvement in bad loans. Other income rose 44 per cent to Rs 3 082 crore in the quarter. However frofit was impacted by a near-doubling of provisions year-on-year (y-o-y) to Rs 4 467 crore in Q3FY18. The bank said that it was required to make additional provision of Rs 1 112 crore for Reserve Bank of India s first list of large loan defaulters by March 2018 and has already provided Rs 854 crore up to December 2017. Operating profit at Rs 4 245 crore was 53 per cent higher than what it had reported in the same period last year. Its net interest income stood at Rs 3 989 crore up 7 per cent y-o-y and its net interest margin for domestic business stood 2.59 per cent for the first nine months of FY18. MD & CEO Sunil Mehta told a news https://wrapbootstrap.com/user/kkabhibus channel that in the second list of defaulters the bank has an exposure to 20 companies aggregating to Rs 6 500 crore of which it has provided Rs 75 crore. The accounts are yet to be admitted by the National Company Law Tribunal (NCLT) and depending upon their status we will take a call Mehta said. Asset quality improved in the December quarter with gross non-performing assets as a percentage of total advances at 12.11 per cent down 159 bps y-o-y. Net NPAs stood at 7.55 per cent down 154 bps y-o-y. For all the latest Business News download Indian Express App More Related News 15 months after demonetisation RBI still processing returned notes Regulators need to be cognisant of market bubble risk: RBI chief Urjit Patel Tags: Punjab National Bank RBI DDr. Bella TrembleFeb 7 2018 at 3:53 pmWe are urgently in need of s in Columbia Asia Hospital India for the sum of 450 000 00 Call or WhatsApp for more details Mobile 9206251334. Email : columbiaasiahospital3 Dr. Bella Tremble.(0)(0) Reply
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