February 27, 2018 / 5:21 AM / 3 months ago

BUZZ-India's PNB plunges to 20-mth low; uncovers more fraudulent loans

** Shares of state-run Punjab National Bank Ltd fall as much as 8.93 pct to 102 rupees, lowest since June 24, 2016

** Company said on Monday that the amount of fraudulent transactions involving the bank could go up by about $204 million in addition to the $1.77 billion it had earlier reported

** The alleged fraud, by far the biggest ever detected by a local bank, is centred around companies linked to a billionaire jeweller Nirav Modi and his uncle Mehul Choksi, owner of Gitanjali Gems Ltd.

** A number of banks provided loans to Modi and Choksi after PNB issued letters of undertaking, or guarantees, for the loans

** The PSU Bank index down 2.5 pct, with all stocks trading in the red

** PNB stock fell over 30 pct in nine trading sessions since the fraudulent transactions were first reported, while the PSU Bank index fell 8.8 pct during that period

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