PNB stocks plunges into new low after new revelations in Nirav Modi scam

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Punjab National Bank shares plunged into a new year low after the bank on Tuesday said that the amount of fraudulent transactions could be 1,300 crore more than the current estimate of about 11,400 crore. The latest announcement from the public sector lender assumes significance against the backdrop of the probe going on into the Rs 11,400 crore scam, which is already one of the biggest in the Indian banking sector.

PNB stocks is down by more than 10% in today’s trade. Punjab National Bank shares slumped as much as 10.8 per cent on Tuesday to hit their 52-week low level in morning trade. Shares of the company opened weak at Rs 107.80, then cracked 8.75 per cent to a 52-week low of Rs 102.10 on the BSE. Similar movement was seen on the NSE too, where the stock opened at Rs 106.80, then fell to its 52-week low of Rs 102, down 8.92 per cent over its previous close.

On February 14, the bank had detected a fraud in which billionaire jeweler Nirav Modi and others have allegedly acquired massive credit through fraudulent LoUs. In a filing to the BSE late on Monday, the bank said the amount of unauthorised transactions could go up by more than Rs 1,300 crore. “…We have to inform that quantum of reported unauthorised transactions can increase by USD 204.25 million (approximately),” the filing said.

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