Indian Finance Ministry Removes Two Punjab National Bank Directors

(Bloomberg) -- India’s federal government has removed two executive directors from Punjab National Bank, the state-owned lender hit by a $2 billion bank fraud last year.

India’s finance ministry notified PNB it has removed K.V. Brahmaji Rao and Sanjiv Sharan as executive directors effective immediately, according to an exchange filing Friday, without giving any reason for the decision.

PNB last year alleged that a rogue employee provided fake guarantees worth $2 billion to a couple of jewelers, which they used to obtain loans from abroad. Federal investigators in May filed a charge sheet naming the two executive directors and a former chief executive officer in connection with the fraud.

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