shot-button
Subscription Subscription
Home > News > India News > Article > PNB fraud shows how banking system fails to detect it Trinamool Congress Mp

PNB fraud shows how banking system fails to detect it: Trinamool Congress Mp

Updated on: 20 February,2018 06:44 PM IST  | 
IANS |

The Central government has been recapitalising banks and infusing funds into the banking system but if huge capital is drained out, how can banks survive, he said

PNB fraud shows how banking system fails to detect it: Trinamool Congress Mp

PNBPunjab National Bank


Taking a dig at the Centre, Trinamool Congress MP and the party's veteran leader Saugata Roy on Tuesday said the alleged $1.8 billion banking fraud showed how much the country's banking system failed to detect it early. The Punjab National Bank had recently detected a $1.8 billion scam allegedly involving jeweller Nirav Modi and his uncle Mehul Choksi.


"Nirav Modi's case showed how much the country's banking system failed to detect it. Despite the presence of Reserve Bank of India and Union Finance department, the fraud was not detected early. I think a renewed thought should be applied to revive the banking sector," Roy said here on the sidelines of the event -- "Infra-East" -- organised by the Confederation of Indian Industry (CII).


The Central government has been recapitalising banks and infusing funds into the banking system but if huge capital is drained out, how can banks survive, he said.

"It is a matter of concern. There is a slippage from the government," he said, adding that the Central government must reveal how the alleged fraud was executed. The banking fraud was unearthed when banks, particularly public sector lenders, are reeling under the growing non-performing assets, Roy said. He indicated that lending to the infrastructure sector could be impacted in view of these problems.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Trending Video

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!


Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK