New Delhi April 10 (IANS) Following the multi-crore fraud that took place in the bank Fitch Ratings on Tuesday has downgraded the Viability Rating of Punjab National Bank (PNB) to bb- from bb and has maintained the rating on Rating Watch Negative (RWN).
According to a statement from the credit ratings agency PNB s other ratings are unaffected by this downgrade.
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"The downgrade follows our assessment of how losses resulting from fraudulent transactions reported in February 2018 will affect the bank s financials including its earnings and core capitalisation. The downgrade also reflects the bank s risk controls which we think are weaker than what we had previously believed since the fraud was undetected for several years and acquired a large scale of $2.2 billion. That said the bank plans to strengthen its risk control" " the statement said.
Soon after the fraud was revealed in February 2018 the Fitch had warned PNB of downgrading its Viability Ratings.
A fraud of around $2.2 billion took place in PNB the second largest in public sector by diamond trader Nirav Modi and his uncle Mehul Choksi.
--IANS
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