NEW DELHI:  Punjab National Bank fraud  is the biggest scam which is being speculated and buzzing everywhere and recently in the news headlines everywhere. According to the reports (PNB) has informed to stock exchanges on yesterday that the bank has been hit by theft of amounting near Rs 11,3000 crore at one of its branches in Mumbai. Today we are going to tell you some details related to the bank fraud that you must know. Scroll down the button to know more about it. 

-Where it all started? 
-In 2011, when a letter of undertaking (LoU) was opened at the Fountain branch of PNB in Mumbai by the alleged fraudster. 

-What is mean by an LoU? 
A bank guarantee. The bank opening an LoU for a client agrees to unconditionally repay the principal and interest on client’s loan. The client could be an importer who uses funds or credit limit with an Indian bank to get cheaper foreign currency loans.

-The misuse of LoU 
A PNB deputy manager, Gokulnath Shetty, allegedly used his access to the SWIFT messaging system used by banks for overseas transactions to authenticate guarantees given on LoUs without any sanctions. Based on such authentications, overseas branches of several Indian banks gave forex credit
 

- How many banks really affected with the fraud? 
There are several Indian banks with overseas branches will be impacted as they have provided loans based on these LoUs. PNB is denying liability, claiming that these are fraudulent LoU

-A Strict action taken by PNB 
It has suspended 10 employees, and referred the case to CBI and ED
 

- When the news becomes the lighlight? 

In January, when the earlier LoUs matured and foreign branches did not get their money. They then turned to PNB, which said that the guarantees were fraudulent
 

- The fraud in numbers 
) The fraud is 8 times the bank’s 2016-17 profit of Rs 1,325 crore
2) It is equal to a third of PNB’s market cap of Rs 35,300 crore