After being hit by a huge fraud, Punjab National Bank (PNB) on Tuesday reported a net loss of Rs 13,417 crore in the fourth quarter, the worst loss ever reported by an Indian PSU. The PSU had reported Rs 261.90 crore profit in the corresponding quarter last year.
For the March quarter, the bank made provisions and contingencies worth Rs 20,353.10 crore.
“During the quarter ended March 31, a fraud was detected at Brady House, Mumbai Branch of the bank involving certain accounts under gems & jewellery sector where through apparent connivance between these entities and few employees of the bank, some Letters of Undertaking (LOUs) or Foreign Letter of Credit (FLCs) were issued fraudulently and in unauthorised manner to certain overseas branches of Indian banks through the misuse of SWIFT system of the bank, which was then not integrated with CBS,” PNB said in a press release.
In what has been called the biggest fraud in India’s banking history, PNB in February this year, disclosed two jeweller groups had defrauded it of more than $2 billion.
PNB is the worst performer among all Indian bank stocks this year.
