Punjab National Bank was started their operation on April 12 1895 in Lahore. PNB was one of the most largest public sector back in India .Nirav Modi is the director of Punjab National Bank. In 2018 February we all are witnessed a big scam that happened in the PNB around 11400 crore transacted through unauthorised and fraudulent manner.
PNB scam is a case of financial fraud done by Nirav Modi with the assistance of senior PNB officials colluded with the bank by obtaining LoUs without submitting any securities. The impact of the scam is very huge. In February 14 the scam was determined after further investigation as its Mumbai's Brady branch. After detailed investigation found around of 100 LoUS (letter of Undertaken) issued without any collateral security. Later PNB became victim of the fraud and faced the problem amounting around 11400 crores.
Punjab National Bank scam affected adversely on all banking sector industry. Foreign investors lost their confidence and trust in the public sector banks due to this. The scam was occurred due to the poor management of bank and failure in auditing. Auditors fail to detect any frauds that took place in PNB. After this the Government of India took many policies to overcome such frauds that happening in the banking sector.
Article by
Tisha Shaji
August 04, 2023
Tags :
Failures
,
governance
,
money
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