Banks may take a hit of at least Rs 176 bn from PNB scam: I-T Dept

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Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National Bank in a $1.77 billion fraud case, the income tax department said on Saturday.

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.

But the total hit to Indian banks “may well exceed” that amount the department said in its note.standard