The stock market has become a crucial aspect of banks' earnings and growth, with any changes in a bank's operations having an impact on its stock price. This sensitivity is due to investors making rational decisions based on trends and public information. This study aims to examine the effect of the PNB Scam, a significant fraud case, on banking stock prices in both the short and long run. Using secondary data from 41 banks listed on the BSE Sensex, the study analyzes the stock prices in the aftermath of the scam.