Another failure of ethics and systems in India comes to light. At a time when the system is reeling from rotten souring loans. Without bank governance reform, loan crises and fraud will keep on recurring, and Indian taxpayers will keep on forking out cash.
Punjab National Bank has revealed that a flamboyant jewellery kingpin colluded with bank employees to fraudulently acquire credit guarantees worth over $1.8 billion.
Other banks seem to have been involved allegedly in the scam. Axis Bank Ltd. and Allahabad as well as Union Bank and State Bank of India have been cited in the chain.
Punjab National Bank, the second largest State bank, has form. The lender fell foul of the authorities following a similar fraud just five years ago with another jewellery concern.