NEW DELHI: Fraud-hit Punjab National Bank (PNB) on Tuesday stated it has no plans to close operations at its Brady House branch, the fountainhead of the Rs 14,000 crore Nirav Modi rip-off.
Nirav Modi and his uncle Mehul Choksi, in connivance with positive bank officers, allegedly cheated PNB of about Rs 14,000 crore via issuance of fraudulent Letters of Undertaking (LoUs).
PNB's Brady House branch in Mumbai had fraudulently issued LoUs for the gang of companies belonging to Nirav Modi since March 2011.
"PNB has no plans to close operations in the Brady House branch in Mumbai. Reallocation of some of the accounts is part of the regular restructuring process at PNB to strengthen internal systems and processes and centralize certain critical functions," a spokesperson of the bank stated.
Retail operations for PNB shoppers proceed to perform from the branch, the respectable stated.
With regards to provision made for the loss incurred because of the Nirav Modi fraud, the bank supplied Rs 7,178 crore, 50 in keeping with cent of the full amount of Rs 14,356 crore, in the fourth quarter of 2017-18. The ultimate amount will likely be covered in the three quarters of the present fiscal year.
PNB paid Rs 6,586.11 crore to other banks to discharge its liabilities in opposition to Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) issued fraudulently and in unauthorised way to positive in another country branches of Indian banks through the misuse of SWIFT gadget of the bank, which was once then now not built-in with CBS (Core Banking Solution).
Nirav Modi and his uncle Mehul Choksi, in connivance with positive bank officers, allegedly cheated PNB of about Rs 14,000 crore via issuance of fraudulent Letters of Undertaking (LoUs).
PNB's Brady House branch in Mumbai had fraudulently issued LoUs for the gang of companies belonging to Nirav Modi since March 2011.
"PNB has no plans to close operations in the Brady House branch in Mumbai. Reallocation of some of the accounts is part of the regular restructuring process at PNB to strengthen internal systems and processes and centralize certain critical functions," a spokesperson of the bank stated.
Retail operations for PNB shoppers proceed to perform from the branch, the respectable stated.
With regards to provision made for the loss incurred because of the Nirav Modi fraud, the bank supplied Rs 7,178 crore, 50 in keeping with cent of the full amount of Rs 14,356 crore, in the fourth quarter of 2017-18. The ultimate amount will likely be covered in the three quarters of the present fiscal year.
PNB paid Rs 6,586.11 crore to other banks to discharge its liabilities in opposition to Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) issued fraudulently and in unauthorised way to positive in another country branches of Indian banks through the misuse of SWIFT gadget of the bank, which was once then now not built-in with CBS (Core Banking Solution).
No plans to close operations at Brady House branch in Mumbai: PNB
![No plans to close operations at Brady House branch in Mumbai: PNB]()
Reviewed by Kailash
on
July 03, 2018
Rating:
