PNB extends fall post Rs 114-bn fraud detection; Gitanjali hits 52-week low

Punjab National Bank (PNB) was trading 6% lower in late noon deals at Rs 138, extending its previous day’s 10% decline on BSE, after the state-owned bank said on Wednesday it had been defrauded of about Rs 114 billion by jeweller Nirav Modi, his maternal uncle Mehul Chinubhai Choksi, and other relatives through a clutch of companies their own.

The stock of state-owned lender fell 9% to Rs 133 in early morning trade today. The trading volumes on the counter jumped more than three-fold with a combined around 75 million shares changed hands on BSE and NSE till 12:45 PM.

In a letter to the chiefs of several banks, a general manager of PNB said the letters of undertakings (LoUs) were opened in favour of branches of Indian banks for import of pearls for a period of one year, for which the Reserve Bank of India (RBI) guidelines stipulate a total time period of 90 days from the date of shipment, the Business Standard reported.