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Punjab National Bank detects $1.8 bn fraud at a Mumbai branch, Links to Nirav Modi

Punjab National Bank, the second largest public sector bank in India

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Punjab National Bank is India's second largest bank. Wikimedia Commons
Punjab National Bank is India's second largest bank. Wikimedia Commons
  • Punjab National bank has detected a $1.8 billion fraud
  • The fraud happened in their Mumbai branch
  • The matter has been referred to law enforcement

Punjab National Bank, the second largest public sector bank in India, has detected a $1.8 billion fraud in one of its branches here, the bank said in a regulatory filing to the stock exchanges on Wednesday.

Punjab National Bank experiences a fraud of $1.8 bn.
Punjab National Bank experiences a fraud of $1.8 bn.

“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,” the filing by the bank said.

It had quoted the quantum of such transactions was to the tune of around $1,771.69 million (around Rs 11,515 crore).

The amount of fraudulent transactions is equivalent to eight times the bank’s net income of about Rs 1,320 crore ($206 million).

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This case has happened at a time when the Indian banking system is already grappling to tackle its swelling non-performing assets.

“Based on these transactions other banks appear to have advanced money to these customers abroad. 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,” the filing said.

Punjab National Bank's Mumbai branch is now under high scrutiny. Wikimedia Commons
Punjab National Bank’s Mumbai branch is now under high scrutiny. Wikimedia Commons

The bank informed: “The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land.”

On February 5, the Central Bureau of Investigation had booked billionaire diamond service provider Nirav Modi, his brother, wife and an enterprise companion for allegedly cheating Punjab National Bank of over Rs 280.70 crore last year.

Also Read: Con man in Delhi Duped Amazon for over Rs. 50 Lakh; Arrested by Delhi Police for Fraud

Following the complaint, the CBI registered a FIR under the Indian Penal Code sections related to criminal conspiracy, cheating and provisions of the Prevention of Corruption Act against the four.

The stock of Punjab National Bank was trading at Rs 149.20 per share, down 7.70 percent at the BSE at 1.59 p.m. IANS

Next Story

India is Leading Mobile Ad Fraud in Asia: Report

Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem

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Asia
Major types of ad Fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent), and the cases Have Been Increasing in Asia. Pixabay

India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday.

Nine out of 10 marketers said there is scope for improvement in ad fraud prevention methods while 95 per cent respondents felt that lack of penalties and transparency in industry regulations give rise to ad fraud,” said the report titled ‘Ad Fraud Benchmark Report’ from global non-profit organization Mobile Marketing Association.

Major types of ad fraud are cookie stuffing (74 per cent), adware traffic (65 per cent), data fraud (61 per cent) and ad injection (54 per cent).

Only 37 per cent respondents are aware of Blockchain and its application to fraud prevention, said the report published in collaboration with a leading research firm Decision Lab.

Asia
India is leading mobile ad Fraud in Asia with a rate of 62 per cent as marketers are spending nearly 20 per cent of their advertising budget on ad fraud, a new report said on Monday. Pixabay

“In India, the awareness on ad fraud risks is very low with almost a fifth of the marketers being unclear of their ad fraud budget and majority of them believing that fraudulent activities will only increase,” said Moneka Khurana, Country Head, MMA India.

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“Marketers must understand the potential of technologies such as Blockchain that can help solve issues related to fraud and create security and transparency in mobile marketing ecosystem,” Khurana added. (IANS)