India orders closure of 35 foreign branches of state-owned banks

India's Finance Ministry Thursday ordered the closure of 35 branches of state-owned banks in foreign countries, days after the country's biggest-ever bank fraud of 1.8 billion U.S. dollars came to light.

"PSBs (public sector banks) to consolidate 35 overseas operations without affecting international presence of PSBs in these countries; 69 ops identified for further examination," Rajiv Kumar, the Secretary of India's financial services department, tweeted.

The banks that have been asked to shut down foreign branches include the country's largest lender, State Bank of India (SBI), Punjab National Bank and Bank of Baroda. SBI has 195 foreign offices spread across 36 countries and regions.

The ministry's move came after Punjab National Bank last month reported to authorities about the 1.8 billion U.S. dollars fraud, masterminded by billionaire jeweller Nirav Modi, though he claimed to owe the bank only 775 million U.S. dollars.

Though Modi has not been formally charged for the crime, India's External Affairs Ministry has revoked the passports of the disgraced jeweller and his uncle and business partner Mehul Choksi, and launched a massive crackdown on companies linked to the duo.

(ASIA PACIFIC DAILY)