Banks may take more than $3 billion hit from PNB fraud case: I-T Dept

Indian banks could take a hit of more than $3 billion from loans and corporate guarantees provided to diamond companies at the centre of a massive alleged fraud at the state-run Punjab National Bank, the tax department has estimated. As of March 2017, banks had extended loans and guarantees worth Rs 176.

32 billion ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters. Since then, the loans and guarantees would have increased over the past.....

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