Public sector bank stocks have plummeted a massive 12% since the PNB fraud came to light. Graphic: Naveen Kumar Saini/MintPublic sector banks will now have to look back on every defaulter above Rs50 crore and check whether he was genuinely stressed or just fooling them. Public sector bankers are scared enough to report even the slightest fraudulent behaviour to the authorities lest it hits them in the face later on. The directive could have a chilling effect on lending by public sector bankers, not least because the priority is now likely to shift to unearthing fraud. What will be dug out as a result of this exercise is a big uncertainty that will weigh on public sector bank stocks now.

Source: Mint February 28, 2018 02:15 UTC