Rs 1,374 crore vanished in 3 days! LIC takes biggest hit in PNBs free fall
Rs 1,374 crore vanished in 3 days! LIC takes biggest hit in PNBs free fall
A steep 40 per cent drop in the Punjab National Bank's stock in the last three days weighed heavy on its largest shareholder, Life Insurance Corporation of India (LIC).
LIC suffered a notional loss of as much as Rs 1,374 crore in the last three sessions since February 14.
LIC, the biggest 'public shareholder' in PNB, holds 13.93 per cent stake in the bank, followed by HDFC Trustee Company Limited (4.2% stake) and Lazard Emerging Markets Equity Portfolio (2.2 per cent stake), data available with BSE for the quarter ended December 31, 2017 showed.
ALSO READ: 38% slump in 3 days! Avoid PNB in short-term, say experts
The state-run insurer has been hiking its stake in PNB for the last few years. Since 2011, LIC's stake in PNB has gone up from 8 per cent to 14 per cent.
ALSO READ: PNB fraud: What is it, how it happened, and will it snowball?
PNB employees misused the SWIFT network to transmit messages to other banks bypassing the core banking system (CBS), and duping the management about the same.
On these LoUs, overseas branches of Allahabad Bank, Axis Bank, etc, credited PNB’s Nostro account, from where funds were moved to certain overseas parties. Axis Bank on Thursday clarified, saying it had sold all its LoUs before the issue surfaced and there is no financial implication relating to this case.
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