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Politics

After PNB fraud, India grabs at straws to reform state banks

New rule allows seizure of assets but much more needs to be done

NEW DELHI -- The crisis in India's state-owned banking sector is in sharp focus after the government recently approved a bill allowing the seizure of assets owned by "fugitive economic offenders" following the revelation of a $2 billion fraud at Punjab National Bank.

The bill comes after the disappearance of jeweler Nirav Modi, the man at the center of the scandal at India's second-largest state-owned bank. Punjab National Bank revealed early in February that its employees had colluded with Modi and his associates, leaving it with a big hole in its books.

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