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After posting Rs 13417 crore Q4 loss, PNB shares slump 14%

After posting Rs 13417 crore Q4 loss, PNB shares slump 14%

The fraud this week dragged PNB into a $1.98 billion fourth-quarter net loss, the worst loss ever recorded by an Indian bank.

It was noted that the scrip were trading at 10.99 per cent lower at Rs 76.50 on NSE in the morning trade today. Now, the NY court where three of Nirav Modi's companies filed for bankruptcy has reportedly called for an investigation into the role of the bank's employees in the alleged fraud before deciding on proceedings.

Mumbai (Maharashtra) [India], May 16: The Central Bureau of Investigation (CBI) on Wednesday filed the second chargesheet in connection with the Punjab National Bank (PNB) fraud case and named main accused Nirav Modi's uncle Mehul Choksi as "wanted".

The agency also named PNB Executive Directors K.V. Brahmaji Rao and Sanjiv Sharan, and General Managers Nehal Ahad (who dealt in worldwide operations) and Rajesh Jindal in its chargesheet filed in a special CBI court here. The PNB had on Tuesday reported a net loss, after closing hours of the stock markets, of Rs 13,417 crore for quarter ended March, against a net profit of Rs 262 crore for the corresponding quarter in 2016-17. The bank will make payments to the concerned banks on the due dates of LOUs/FLCs, PNB said.

That led to a more than tripling of its total provisions from a year earlier to Rs 20353 crore.

PNB shares may take support around Rs 69 per share in the near term, said Deepak Jasani, Head of Retail Research, HDFC Securities.

Punjab National Bank reports huge loss of Rs. 13417 crore in Q4

PNB said it had allocated 71.78bn rupees to pay around half the amount it owes in the three months to March 31, while setting aside the other 50pc over the next three quarters.

The fraud was first disclosed by PNB in February to be worth Rs 11,400 crore but was later raised to Rs 12,700 crore as new facts came to light.

As per the quarterly number, the RBI detected Gross NPA divergence of Rs 2,207 crore during the FY17.

An analyst with a private brokerage firm who did not wish to be identified said the loss reported may vary depending on the decision of the bank management on whether to spread the impact of the bond losses and gratuity expenses across quarters or provide for the same in entirety in the March quarter.

"PNB may also be restricted to conduct normal business".

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