PNB fraud: 15 days deadline to fix operational gaps, says finmin to senior bank officials
The scam-hit Punjab National Bank (PNB) informed bourses that the amount of fraudulent transactions involving the bank could go up by over Rs 1,300 crore.
PNB fraud: The finance ministry (finmin) on Tuesday set a 15-day deadline for public sector banks to take pre-emptive action against operational and technical risks, following nearly Rs 13,000 crore fraud at the Punjab National Bank (PNB), the country's second-biggest public lender.
"State-run banks have 15 days to take pre-emptive action and identify gaps/weaknesses to gear up for rising operational and technical risks," said Rajeev Kumar, secretary in the department of financial services in a tweet.
Besides fixing "clear accountability" of senior officials, the banks must also learn from best practices and pinpoint strategies including technical solutions, Kumar added.
PNB stock hits fresh 52-week low, tanks 9%; bank makes a key disclosure late at night"In continuation to our filing with stock exchanges on February 14, 2018, we have to inform that quantum of reported unauthorised transactions can increase by $204.25 million," PNB said in a filing to BSE.
At the current exchange rate, the amount comes to around Rs 1,323 crore.
Earlier, PNB had detected a $1.8 billion fraud in the Brady House Branch in Mumbai.
The Central Bureau of Investigation on Monday said it questioned PNB Executive Director KV Brahmaji Rao, two General Managers and a retired official in connection with its probe into the multi-crore fraud.
The Income Tax Department also said it had attached 66 more bank accounts related to accused Choksi.
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