$1.8 Billion in India Bank Fraud Raises Fears of Ripple Effects

The scandal at Punjab National Bank, a state-controlled lender, risks drying up the loans small- and medium-size businesses need to power the country’s growth.

NEW DELHI — One of India’s largest commercial lenders said on Wednesday that it had detected fraudulent transactions worth $1.77 billion at just one of its branches, raising concerns about the possible impact across the banking sector at a time when the country is struggling to meet its economic growth targets.The disclosure comes months after India’s government injected $32 billion into the se...