PNB's Rs 110-bn fraud case isn't out-of-control, says FinMin official

The finance ministry today sought to allay worries over the Rs 113 billion fraud case at Punjab National Bank, saying the case not "out-of-control" and it is taking action in this respect.

"I dont think this is out of control or too big a worry at this point. That is my broad sense," Joint Secretary in Department of Financial Services Lok Rajan said on the sidelines of an event here.

Earlier in the morning Punjab National Bank (PNB) disclosed that it has detected some fraudulent transactions with financial implication of USD 1.171 billion (about Rs 11,334.4 crore) and the matter has been referred to law enforcement agencies for the recovery.

Based on these transactions, other banks appear to have advanced money to these customers abroad, it said.