PNB shares slump 12% as fraud amount raised to nearly $2 billion
New Delhi: Shares of Punjab National Bank (PNB) plummeted by over 12% on Tuesday after the bank said that the alleged fraud committed by jewellers Nirav Modi and Mehul Choksi may be around $2 billion, over $204 million more than previously estimated.
PNB shares dropped 12.11% to end at Rs98.35 on BSE. During the day, it tumbled 14.11% to Rs96.10—its 52-week low. On NSE, the stock plunged 12.18% to close at Rs98.35. In terms of equity volume, 149.07 lakh shares were traded on BSE and over 20 crore shares changed hands on NSE.
The stock has been falling for four straight sessions, down 16%. In these four days, Rs4,547.35 crore in the bank’s market value has been eroded.
“PNB issue continued to impact the PSU banks and its effect was seen in the broad market as well,” said Vinod Nair, head of research, Geojit Financial Services Ltd.
In a late night filing to stock exchanges, the state-owned lender said that “the quantum of reported unauthorised transactions can increase by $204.25 million.” The bank had earlier put the defrauded amount at Rs11,394.02 crore ($1.77 billion). Adding another Rs1,323 crore would take this to Rs12,717 crore.
- Discussion on Israel-Palestine will be about ‘one-state solution’ in future: UAE minister
- Aadhaar case: UIDAI CEO to make presentation before Supreme Court
- Google turns to AI to make G Suite more secure
- Rajya Sabha adjourns, Venkaiah Naidu says doesn’t want people to ‘see ugly scenes’
- Fed’s dots are knock, knock, knocking on Asia’s doors