PNB shares fall 6% to hit 20-month low


New Delhi: Shares of Punjab National Bank slumped over 6% on Wednesday to hit a 20-month low after Nirav Modi’s Firestar Diamond filed a bankruptcy plea in the US, and a Mumbai court issued summons to the accused diamantaire.

Meanwhile, media reports have surfaced that Nirav Modi is not coming back to India anytime soon.

Reacting to the developments, PNB shares fell to an intraday low of Rs92, down 6.45% over its previous closing price on BSE. The stock has fallen to a level last seen on 20 June 2016. Since 14 February, when the scam broke, the stock has fallen as much as 37% on BSE. On the NSE, the stock touched a fresh 52-week low of Rs92.

Modi’s international jewellery business Firestar Diamond filed a bankruptcy plea in the US. Furthermore, a local court in Mumbai has issued summons to the diamantaire in connection with an income tax evasion probe against him and his companies.

PNB has said that the alleged fraud perpetrated by jewellers Modi and Mehul Choksi may be around $2 billion, over $204 million more than previously estimated.

Shares of Gitanjali Gems continued to lose ground and fell 5% to its 52-week low level yet again on BSE and NSE.livemint