NEW DELHI: Fraud-hit Punjab National Bank (PNB) on Tuesday stated it has no plans to close operations at its Brady House department, the fountainhead of the Rs 14,000 crore Nirav Modi scam.
Nirav Modi and his uncle Mehul Choksi, in connivance with sure financial institution officers, allegedly cheated PNB of about Rs 14,000 crore thru issuance of fraudulent Letters of Undertaking (LoUs).
PNB's Brady House department in Mumbai had fraudulently issued LoUs for the crowd of businesses 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 financial institution stated.
Retail operations for PNB customers continue to function from the department, the authentic stated.
With regards to provision made for the loss incurred on account of the Nirav Modi fraud, the financial institution supplied Rs 7,178 crore, 50 in step with cent of the overall quantity of Rs 14,356 crore, within the fourth quarter of 2017-18. The last quantity might be lined within the 3 quarters of the current fiscal year.
PNB paid Rs 6,586.11 crore to other banks to discharge its liabilities against Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) issued fraudulently and in unauthorised means to sure in a foreign country branches of Indian banks during the misuse of SWIFT gadget of the financial institution, which was then not built-in with CBS (Core Banking Solution).
Nirav Modi and his uncle Mehul Choksi, in connivance with sure financial institution officers, allegedly cheated PNB of about Rs 14,000 crore thru issuance of fraudulent Letters of Undertaking (LoUs).
PNB's Brady House department in Mumbai had fraudulently issued LoUs for the crowd of businesses 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 financial institution stated.
Retail operations for PNB customers continue to function from the department, the authentic stated.
With regards to provision made for the loss incurred on account of the Nirav Modi fraud, the financial institution supplied Rs 7,178 crore, 50 in step with cent of the overall quantity of Rs 14,356 crore, within the fourth quarter of 2017-18. The last quantity might be lined within the 3 quarters of the current fiscal year.
PNB paid Rs 6,586.11 crore to other banks to discharge its liabilities against Letters of Undertakings (LoUs) and Foreign Letters of Credit (FLCs) issued fraudulently and in unauthorised means to sure in a foreign country branches of Indian banks during the misuse of SWIFT gadget of the financial institution, which was then not built-in with CBS (Core Banking Solution).
Operations not to close at scam-hit PNB branch
![Operations not to close at scam-hit PNB branch]()
Reviewed by Kailash
on
July 04, 2018
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