Punjab National Bank to wrap up almost all operations at its deceitful Mumbai branch

The bank blames the Brady House employees entirely for the scam and is planning to cut down majority operations in the branch.

Punjab National Bank to wrap up almost all operations at its deceitful Mumbai branch

Punjab National Bank (PNB) is reportedly planning to shut down all major operations in the Mumbai branch that was the core of a $2 billion fraud. The move to trim down the operations at the Brady House branch is an attempt by PNB to stamp authority and restore its reputation. After the scam, the 123-year old bank lost its credibility and half of its market value was brought down.

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PNB will move all its big client accounts out of the Mumbai branch, which reportedly achieved exceptional growth after their dealings with the firms owned by the two jewellers. The bank has accused a handful of staff of issuing fake bank guarantees amid 2011 and 2017 to assist Indian diamond baron Nirav Modi and his maternal uncle Mehul Choksi raise billions of dollars in foreign credit. Both of them are currently abroad and have denied all the allegations.

PNB was also reportedly transferring some employees and big accounts to bigger corporate branches for the sake of better monitoring. The bank has also decided to consider the same steps in other branches in order to assure better control and minimalisation of risks.

Although PNB blames the Brady House employees for the fraud, Reuters reported last month that a 162-page probe by the bank found a deeper connection and the scam was wider than the 54-man staff.

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