The state lender reported a $1.98b loss as it books provisions to cover a massive fraud.
Reuters reports that state-run Punjab National Bank reported a $1.98b (134.17b rupee) net loss in Q4 as it scrambles to book provisions in its bid to cover a massive fraud that took place at the bank.
The loss representing the biggest ever by an Indian lender. PNB set aside a higher-than-required $1.06b (71.78b rupees) in the three months to March 31, or half of the total $2.12b (143.57b rupees) it owes other banks for the illegal guarantees. That led to a more than tripling of its total provisions from a year earlier to $3b (203.53b rupees).
The fallout comes as PNB disclosed in February that two jewelery groups had defrauded the lender of more than $2b after rogue PNB staff issued fake guarantees to raise overseas credit.
Also read: India's banking woes dampen economic outlook
The police have already charged 22 people including a former head of PNB and two of its executive directors in what has been dubbed as the country’s largest banking fraud in history.
Here’s more from Reuters.
Do you know more about this story? Contact us anonymously through this link.