Indian banks may take more than $3 billion hit from PNB fraud: tax dept
Sat Feb 17 2018
Rajesh Sharma (1997 articles)

Indian banks may take more than $3 billion hit from PNB fraud: tax dept

NEW DELHI (Reuters) – Indian banks could take a hit of at least $ 2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $ 1.77 billion fraud case, the tax department said on Saturday.

As of March 2017, banks had extended loans and guarantees worth 176.32 billion rupees ($ 2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters.

But the total hit to Indian banks “may well exceed” that amount the department said in its note.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.