PNB reports Rs. 13416.91 Cr. loss in Q4

Cornelia Mascio
Mag 17, 2018

The Central Bureau of Investigation (CBI) has filed its second chargesheet in Punjab National Bank (PNB) fraud case running over Rs 13,000 crore on Wednesday. The bank made payments to the tune of almost Rs 6600 crore to other banks to whom it owed money on underwriting commitments with regard to the letters of undertakings that were fraudulently issued to the Nirav Modi group.

The chargesheet was filed before a special CBI court in Mumbai. This case is registered on the basis of a CBI FIR. It is alleged that the accused in this case had hatched a criminal conspiracy and had defrauded the bank to the tune of Rs7,000 crore. According to it, the alleged loss to the bank was over Rs 4,886 crore, arising out of 143 Letters of Undertaking (LoUs) and 224 Foreign Letters of Credit issued to the companies of Choksi, the officials said, adding that the total loss, allegedly perpetrated by the jeweller and his nephew Modi - both absconding - was over United States dollars 2 billion. This CBI said this was done without any sanctioned limit or cash margin and without making entries in the Core Banking System. "The bank has consumed a lot more capital and there would be further impact on Tier-1 ratio in the ensuing quarters till the balance sheet is stabilized", said Kotak Institutional equities in a note to its investors.

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Ms Ananthasubramanian, who held the same position at Punjab National Bank in 2016, has been named along with three other top officials, including executive directors Sanjiv Sharan and Brahmaji Rao and Nehal Ahad. They were all arrested along with Gokulnath Shetty in this case and are now in judicial custody. According to the company, the profit during the quarter under review increased to Rs 219.2 crore from Rs 152.4 crore reported for the corresponding period of previous year. The chargesheet also named former and current employees of Choksi- owned companies: Aniyath Nair, former director of the Choksi-owned M/s Gili India Ltd, Nitin Sahi, manager, Gitanjali group, Kapil Kandelwal, CFO, Nakshatra group and Gitanjali group and Vipul Chitalia, vice president of the Gitanjali Group of Companies.

The CBI in its 12000 page chargesheet charged 15 accused persons and three firms under sections 409, 420, 120B of the Indian Penal Code (IPC).

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