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Indian banks 'may take more than US$3b hit from PNB scandal'

Tax dept warns of losses over loans to diamond companies involved in massive alleged fraud

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Two employees of state-run Punjab National Bank and a third man have been detained in a fast-widening probe into the country's biggest bank scam. A police source said the CBI had sent a notice through Interpol in its search for billionaire jeweller Nirav Modi.

New Delhi

INDIAN banks could take a hit of more than US$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 (PNB), the tax department has estimated.

As of March 2017, banks had...

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