India's latest financial scandal erupted when the state-controlled Punjab National Bank disclosed that it had been hit by "fraudulent and unauthorized transactions" and named celebrity jeweler Nirav Modi as the prime suspect.
This is a severe blow to a banking system that is reeling from a bad loan crisis. It is also serious international embarrassment for Indian business. Modi is not the first Indian billionaire to face criminal investigation over large amounts of money borrowed from a state-owned bank.
