The development comes a day after PNB recorded a huge loss worth Rs 13,417 crore in its fourth-quarter net loss on Tuesday.
The stock tanked to a fresh 52-week low of Rs 74.30 on BSE and is now at Rs 75.50, down 12.2% from its previous close. 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.
"The charge sheet was filed under Indian Penal Code sections of conspiracy and cheating, and under relevant sections of the Prevention of Corruption Act, before Special Judge, CBI cases, Mumbai, on the allegation of committing a fraud to the tune of Rs 7,080.86 crore".
The CBI on Wednesday filed its chargesheet against billionaire jeweller Mehul Choksi and 17 other entities, including companies owned by him and other individuals, in connection with the over $2 billion Punjab National Bank (PNB) scam. Over the last couple of years, following the central bank's directive that mandates banks to disclose all their bad and doubtful loans, several public sector banks have been reporting huge amounts of bad loans and Punjab National Bank figures among the banks that are worst hit due to heavy defaults by borrowers.
The loss, which contrasted with a profit of Rs 261.90 crore in the year-ago period, came close to the size of Nirav-Choksi scam whose size has been again pushed up to Rs 14,356.84 crore as disclosed by the bank in the notes to the accounts for the March quarter. Ananthasubramanian was earlier with the PNB.
PNB accounted for Rs 44274 crore of incremental bad loans in the March quarter - including Rs 7579 crore related to the fraud and 102.37 billion rupees after the stricter RBI rules - taking its gross non-performing assets ratio to 18.38 percent of the total at the end of March.
PNB, which raised 50 billion rupees from a share sale in December and has received almost 55 billion rupees from the government as part of a $32 billion bank recapitalisation programme, has said it is adequately capitalised for now.
During the fourth quarter, the bank posted a net loss of Rs 13,417 crore.
The m-cap of PNB Housing Finance stood at Rs 21,265.20 crore on May 16 compared with PNB's Rs 20,856.10 crore.
To ensure proper checks and balances, PNB has gone for a four-way split for loan operations and created a focused off-site centre for monitoring all foreign exchange businesses.