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PNB Scam an Eye Opener for Indian Banking Sector
February 22, 2018
Although the massive scam involving Punjab National Bank (PNB) has become a nightmare for the public sector lender and the government, it has also raised questions on the Indian banking system which is evidently riddled with poor management practices.
Post the subprime crisis in 2008, all the major international banks took measures to bolster the corporate governance. However, not much has changed in the Indian banking sector regarding protection against frauds and mismanagement risks.
Industry stakeholders are concerned how PNB continued to issue letters of understanding (LoU) for Nirav Modi for 7 years without management checks.
