Punjab National Bank, India reports 38 billion rupees fraud

In early July 2019, Punjab National Bank (PNB) , India reported a 38 billion rupees ($556 million) fraud.  PNB is the second largest state bank in India. The Bank has stated that forensic auditors have uncovered a fraud in the account of Bhushan Power & Steel (a steelmaker currently undergoing bankruptcy proceedings that began in 2017).  The fraud involves fraudulent borrowings from  PNB branches in Dubai and Hong Kong. There are increased demands to privatise Indian banks to reduce politically motivated lending. In 2018, PNB was at the centre of a political and financial scandal after it reported that companies associated with Nirav Modi (a jeweller and NO relative to the current Prime Minister) were involved in a fraud of about $2 billion. PNB’s share price has fallen by over 50% since 20918 when the Modi scandal was discovered.

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