Fitch Ratings has placed Punjab National Bank (PNB) on ‘Rating Watch Negative’ (RWN), reflecting a possibility of downgrade following the $1.77 billion fraud. The agency has placed the bank’s Viability Rating of ‘bb’ on RWN.
The agency added that the fraud — the biggest ever in the banking history– has raised questions on both internal and external risk controls as well as the quality of management supervision considering that the fraud went undetected for several years.
PNB is one of the oldest banks in India having a virtual presence in every important center of the country. The Bank caters to a wide variety of audience through spectrum of services including corporate and personal banking, industrial finance, agricultural finance and international finance.