The USD 1.8 billion fraudulent transactions detected at Punjab National Bank (PNB). In an interview with CNBC-TV18, Ajay Srivastava, CEO of Dimensions Corporate Finance Services shared his views and readings on the same and its impact on the market as well as on sector.
This is not about some junior employee doing some little computer entry in the middle of the Mumbai – this is systematically followed by all public sector undertaking (PSU) banks, very accommodative transaction – it is not about the stock market. I think it is about the whole Ministry of Micro, Small and Medium Enterprises (MSME) sector which accesses credit from this whole PSU banking system. They will be put under the cosh because every draw now onwards will be put under the severe scrutiny, he said.
Unless the government moves into quarantine this problem and ensure the credit delivery to export industry remains, this will cause a stress on the export side and on a very severe manner, said Srivastava.
My worries are less about the stock market, my worries are more about the whole export sector which will be put under a scrutiny, thanks to these transactions, he further mentioned.
All the PSU banks play hooky with the law, he added.