PNBtakes proactive stand on fraud detection, steps up action

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Reports to various law and enforcement
agencies for probe

Thesynergyonline Banking Bureau

NEW DELHI, FEBRUARY 15 : The fraud which was detected by Punjab National Bank (PNB) recently is a standalone incident in one of bank's branches. It was started in March 2011. We have put our Inspection & Audit Department into action and have not found any other similar incidence , according to bank's statement.

Inspection & Audit Department into action

The bank has proactively detected and reported this fraud to various Law and Enforcement Agencies and according to media reports Enforcement Directorate has initiated raids for booking the culprits and to safeguard the financial interest of the lenders.

Proactive stand

The bank has kept the other member banks participating in the consortium funding of these two Groups involved to protect the financial interest of banking system at large. The bank has decided to come on heavily on everyone who was involved in such fraudulent activities so as to pursue the clean banking and reforms agenda of the Government.

To come heavily on culprits

Since the matter is under investigation by law and enforcement agencies, it would not be proper to mention much technicalities at this stage, as it involves criminal and civil liabilities of the various stakeholders.

Involves criminal and civil liabilities of stakeholders.

The bank has the capacity and capability to handle the situation and protect the interest of the institution. The bank has already initiated prompt steps for protecting the financial interest of all the lenders/stakeholders including issuance of advisory to lenders involved and to act swiftly to recover the dues.

Capability to handle the situation

Punjab National Bank is committed to honour all bonafide commitments. In pursuant of Clean and Responsible Banking agenda of the Government, the bank has taken proactive steps to bring the culprits to the books and initiated strong action against the Companies and the staff involved.

To honour all bonafide commitments

Punjab National Bank is a 123 years old Institution which has seen various ups and downs in the past and has come out stronger on each occasion.