Indian banks may take more than $3 bln hit from PNB fraud: Tax dept

Indian banks could take a hit of at least $2.7 billion from loans and corporate guarantees provided to Punjab National BankBSE -2.10 % in a $1.77 billion fraud case, the tax department said on Saturday. 

As of March 2017, banks had extended loans and guarantees worth 176.32 billion rupees ($2.74 billion) to companies tied to billionaire jeweller Nirav Modi and his uncle Mehul Choksi, the tax department said in a note seen by Reuters.