India's Punjab National Bank now expects the amount of fraudulent loans uncovered at the bank to increase by about US$204.3 million, adding to what is already one of the biggest fraud cases to hit an Indian bank.
The bank earlier reported it detected US$1.77 billion of fraudulent transactions at one of its Mumbai branches. The loans were allegedly issued by two junior officials at the bank to companies linked to jeweler Nirav Modi and his uncle Mehul Choksi.
India's Central Bureau of Investigation had since arrested six bank officials in connection with the case. The government also ordered the bank to conduct a forensic audit into why it failed to detect the fraud earlier.
As of Feb. 26, US$1 was equivalent to 64.83 Indian rupees.