INSUBCONTINENT EXCLUSIVE:
In February, PNB disclosed it had discovered some fraudulent transactions amounting to Rs 11,390 crore.New Delhi: Moody's Investors Service
has downgraded Punjab National Bank's rating citing the impact of recent fraud on its capital as well as weak internal controls
However, the outlook to the rating has been retained as stable which reflects Moody's expectation that the negative impact of the fraudulent
transactions is largely known
The agency downgraded PNB's foreign currency issuer rating by a notch to 'ba1', which is non-investment grade, from 'Baa3'- meaning below
At the same time, Moody's has downgraded the bank's baseline credit assessment (BCA) and Adjusted BCA to 'b1' from 'ba3'," Moody's said in a
profile, particularly its capital position
The rating downgrade also reflects the weak internal controls and processes of the bank, given that the fraudulent transactions were
transactions amounting to Rs 11,390 crore ($1.7 billion)
Based on the bank's subsequent announcements, PNB's total exposure to these transactions amounts to Rs 14,400 crore ($2.2 billion).(Except
for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
