Fraud hit PNB ranked best PSB for digital transactions

Punjab National Bank (PNB), which was recently hit by a multi billion dollar fraud by manipulation of its financial messaging -- Swift -- system, has been ranked as the best PSU bank in the overall digital transactions category in India.

The bank said in a statement on Saturday: "Based on the recent findings of DFS (Department of Financial Services), PNB is ranked the number 1 PSU bank in digital transactions in India." 

A Rs 13,500-crore fraud came to light in January, when it was found that the financial messaging system SWIFT was manipulated. It was used to issue Letters of Undertakings (LoUs) to conduct the fraud.

In the aftermath of the fraud, the bank had to rectify and strengthen its internal controls.

According to the PNB statement, the report card on the banking sector's performance in digital transactions as on July 31, 2018 was prepared by the Ministry of Finance.

As per the DFS' findings, PNB's average percentage of technical declines is only 0.83 per cent of the total transactions.

It has been rated as the sixth best in the overall category amongst all banks in India for digital performance. 

"The bank is fully committed to 'Digital India' initiative," the statement said.

"The bank is rated as 'Good' by the government with a score of '71' which is the highest category of performance."  - IANS