February 20, 2018 / 5:10 AM / 3 months ago

BUZZ-India's PNB falls for fifth session, wipes off $1.86 bln in market value

** Shares of state-run lender Punjab National Bank fall as much as 4.7 pct to 111 rupees, lowest since July 2016

** Fifth straight day of losses for PNB after disclosing a $1.8 bln fraud, wiping off 120 bln rupees ($1.86 bln) in market value

** Stock has lost about 30 pct of its value since the lender disclosed the fraud

** Federal police arrested three more PNB employees on Monday in the fraud probe

** “The nature of the alleged scam reduces our confidence level in the bank, and PSUs (public sector undertakings) in general,” Nomura analysts write in a note

** Nomura estimates PNB’s capital requirement to increase by 50 bln rupees to 100 bln rupees ($776.1 mln - $1.55 bln), assuming a write-off of 70 bln rupees-130 bln rupees over the alleged fraud

** Nifty PSU bank index falls for seventh day, down 1.2 pct ($1 = 64.4250 Indian rupees) (Reporting by Tanvi Mehta and Patturaja Murugaboopathy)

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