17.1 C
New Delhi
Friday 24 January 2020

Nirav LOUs: Will honour bonafide commitments, says PNB

New Delhi: Punjab National Bank (PNB) today said it will honour all its “bonafide commitments” under the Letters of Undertaking (LOUs) and Foreign Letters of Credit (FLCs) in connection with the colossal banking fraud involving billionaire jewellers Nirav Modi and Mehul Choksi.

LOUs have been used to defraud PNB, the country’s second-largest bank, to the tune of Rs 11,384 crore.

Meanwhile, CBI continued to question arrested bank officials — Gokulnath Shetty (retired) and Manoj Kharat, and the signatory of Nirav Modi’s company. It also continues to question other officials of PNB to find out the money trail and depth of the alleged scam involving thousands of documents and digital records.

The CBI is also examining financial transactions of 18 India-based subsidiaries of the Gitanjali group of companies promoted by Choksi to understand the money trail of funds taken from various banks on the basis of Rs 11,384 crore of guarantees furnished by Punjab National Bank, officials said here.

PNB, in a notice posted on its website, said: “We will honour all our bonafide commitments under LoUs and FLCs as per law of the land and as per specific existing guidelines of regulator i.e. RBI on LOUs and FLCs.” The Reserve Bank has said that it has not directed PNB to meet its commitments under the LOU to other banks.

The banking sector regulator said however that the fraud at PNB is a case of operational risk arising on account of delinquent behaviour by one or more employees of the bank and failure of internal controls.

RBI added that it has already undertaken a supervisory assessment of control systems in PNB and will take appropriate supervisory action.

Besides CBI, the case is also being investigated by other central agencies including Enforcement Directorate and Income Tax Department.

Markets regulator Sebi, too, is looking into the fraud case that has adversely impacted the stock markets.

The PNB scrip on NSE touched a 52-week low of 113.55 during intra-day trade, before closing at Rs 115.1, down 8.32%.


Stay on top - Get daily news in your email inbox

Sirf Views

Pandits: 30 Years Since Being Ripped Apart

Pandits say, and rightly so, that their return to Kashmir cannot be pushed without ensuring a homeland for the Islam-ravaged community for conservation of their culture

Fear-Mongering In The Times Of CAA

No one lived in this country with so much fear before,” asserted a friend while dealing with India's newly amended citizenship...

CAA: Never Let A Good Crisis Go To Waste

So said Winston Churchill, a lesson for sure for Prime Miniter Narendra Modi who will use the opposition's calumny over CAA to his advantage

Archbishop Of Bangalore Spreading Canards About CAA

The letter of Archbishop Peter Machado to Prime Minister Narendra Modi, published in The Indian Express, is ridden with factual inaccuracies

Sabarimala: Why Even 7 Judges Weren’t Deemed Enough

For an answer, the reader will have to go through a history of cases similar to the Sabarimala dispute heard in the Supreme Court

Related Stories

Leave a Reply

For fearless journalism

%d bloggers like this: