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BT Podcast: PNB fraud is a headache for Allahabad Bank, Axis Bank, Union Bank, SBI

BT Podcast: PNB fraud is a headache for Allahabad Bank, Axis Bank, Union Bank, SBI

On Wednesday the country's fourth largest bank lost nearly 10% of its market cap, around Rs 3,800 crore, following news of a 7-year-old, $1.77 billion (over Rs 11,354 crore) fraud at one of its branches in Mumbai.

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PNB fraud is a headache for Allahabad Bank, Axis Bank, Union Bank, SBI

On Wednesday the country's fourth largest bank lost nearly 10% of its market cap, around Rs 3,800 crore, following news of a 7-year-old, $1.77 billion (over Rs 11,354 crore) fraud at one of its branches in Mumbai. But today, it's all the banks holding 'LoU notes' from PNB that are getting battered.

At the heart of the alleged fraud are the letters of undertaking (LoUs) that allowed billionaire jeweller Nirav Modi to acquire overseas credit from other Indian lenders. PNB's system failure and oversight has serious ramifications for the other banks involved. While PNB did not name other lenders involved, sources in the BSE say that Union Bank of India, Allahabad Bank and Axis Bank figure in the list of banks that offered the jewellery company buyers' credit based on PNB's LoUs along with some foreign bank branches. All of them are now facing a probe. According to media reports, these three banks funded roughly Rs 7,000 crore on the strength of the LoUs, with Allahabad Bank having the largest exposure.

Indian Railways set to hire 89,000 employees; initiates recruitment process

Indian Railways has initiated a massive recruitment drive to hire 89,000 employees in levels C and D. This recruitment drive has been started to hire for the posts of assistant loco pilots, technicians, switchmen, trackmen, helpers, porters and many other openings. Railway minister Piyush Goyal tweeted on Wednesday that they have started the recruitment process for group D for 62,907 posts. Candidates that are high school pass or have an ITI or industrial training institute degree are eligible to apply for it, last date being March 12.

Hackers might be using phones, computers to mine a cryptocurrency

Your computer or phone might be quietly producing a cryptocurrency called Monero. Criminals looking to control massive processing power to unlock new Monero coins might have unleashed  malicious software that burrows deep into victims' web browsers to surreptitiously run calculations, according to a report by Bloomberg. A security researcher found the latest attack last weekend, finding the malware on more than 4,000 sites, including those owned by the US court system,the governments of Australia and Britain, and City University of New York, all of which used a text-to-speech accessibility script called Browsealoud.

'Magnetic Maharashtra' investment summit targets to attract Rs 10 lakh crore

While most of the investments commitment of Rs eight lakh crore from the 'Make in India' event in Mumbai during February 2016 are yet to fructify, the State of Maharashtra is gearing up for attracting another round of huge investments. A maiden Global Investors Summit organised by the Government of Maharashtra, the "Magnetic Maharashtra: Convergence 2018", will be held in Mumbai from February 18-20. "We are eyeing Rs 10 lakh crore of investment pacts with domestic and global investors and plan to sign approximately 4,500 MoUs and our dream of Maharashtra becoming a trillion-dollar economy is going to be a reality soon." Maharashtra Industries Minister Subhash Desai said at a press conference to announce the event.

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