PNB Scam; what should you do now?

pnb scam Nirav modi

Fraud Transactions of Rs 11300 crore in PNB!

In recent time, one stock which is getting more and more investors attention is of PNB. It is the second largest state run bank. On Wednesday morning, PNB reported that they have found some fraudulent transactions in its Mumbai branches. The fraud is linked to Nirav modi, one of the biggest jewellers, and with few other firms including names of Gitanjali Gems also.

Through LoU, Nirav Modi has scammed over Rs 11300 crore from Indian banks. Bank employees of PNB were also found to be involved in this scam. And therefore, top managing committee at PNB was unaware from this scam. However, application filed by payer banks including Axis bank, union bank etc to PNB for recovering loans given to Niver Modi and its other firms helped PNB to discover this scam going on from last few years.

This Fraud of around Rs 11300 crore has resulted in erosion of over Rs 5500 crore market capital of PNB and over Rs 1000 crore market capital of other linked banks also. From levels of around Rs 150, PNB stock is now trading around Rs 125.

The current scenario in market is that Investigations against Nirav Modi and other linked firms have been started by CBI. Few properties of Nirav modi have also been sealed. Beside this, according to media reports, family members of Nirav modi and himself also have already leaved the country before the discovery of the Fraud in the nation.


Although, I think on Firms like Gitanjali gems, it is very difficult to take any call in present market because the scene is not getting clear for them. But as the case is getting clear for PNB investors, i think taking a call is much easier on PNB.

Currently, PNB stock is around Rs 125 which is a good support and base for the stock. A bounce back can be easily expected from these levels.

As the CBI has now started its investigation, it is possible to see some stability in PNB shares from tomorrow onwards. And I think any postive clarification from Nirav modi could improve the sentiment among investors in short-term.

In lower levels, Rs 100 is also good base and support for the stock which is now near to present level. So, overall, I think traders or very short-term investors really have some opportunity to bet on PNB stock. I believe from current levels, one can start fresh buying. But to avoid any larger risk, buy in small proportion so that you would have an option to accumulate at lower levels.

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