PNB fraud case: Investors lose Rs 10,000 crore in 4 days; stock tanks 30%

Shares of Punjab National Bank (PNB) fell over 8% today in the fourth consecutive session, making investors poorer by over 10,000 crore after the Nirav Modi fraud case came to light.  
 
The PNB share was trading 8.68% down at 12.50 pm even as the share has lost nearly 30% in the four trading sessions. 
 
The new developments at the bank have also dragged down Nifty PSU Bank index 6%, while Nifty Bank index tumbled over 1%.

 Last week, PNB said it had detected a fraud in which diamond jewellery designer Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from its Mumbai branches for overseas credit from other Indian lenders.

The case is being probed by the CBI and Enforcement Directorate. 

The CBI yesterday arrested three people, including PNB’s former deputy manager Gokulnath Shetty, the bank’s single-window operator Manoj Kharat, and Hemant Bhat, authorised signatory for Nirav Modi’s firms. 

According to a Business Standard report,  detained Punjab National Bank (PNB) officials in the Central Bureau of Investigation’s (CBI’s) custody said Nirav Modi’s team was given “unauthorised access” to PNB’s computer systems for a “commission” on every letter of undertaking (LoU) issued.

A special court remanded the 3 accused in 14 days’ CBI custody.

Shares of Gitanjali Gems too continued to fall for the fourth straight session today, plunging 10% as investor sentiment remained muted after the company came under the scanner of investigating agencies following PNB's Rs 11,400-crore fraud detection.