PNB shares down by 8% after 1.77 bn fraud transactions at Mumbai branch

New Delhi : Punjab National Bank share prices have dropped by straight 8 percent after the bank detected some fraud transactions worth USD 1,771.7 million at its Mumbai Branch.

With the steep fall, the investors have lost nothing less than Rs 3000 crores on a single day.

"The bank has detected some fraudulent and unauthorized transactions (messages) in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions other banks appear to have advanced money to these customers abroad," the third largest public sector lender said in its BSE filing.

The bank has assured action against the culprits for an approximate transaction of USD 1,771.69 million (approximately).

"The matter was already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank is committed to clean and transparent banking," PNB said.

At 12:01 hours IST, the stock price was quoting at Rs 149.70, down Rs 11.95, or 7.39 percent on the BSE.