Economy

Indian bank says it was defrauded of $1.8 billion

Indian bank says it was defrauded of $1.8 billion

However, PMO either failed or deliberately didn't take up any action.

"This fraud had started in 2011".

The Bank is committed to clean and transparent banking. "That is why we are the first one to detect and report this to the various law enforcement agencies", he said.

It also assured that the fraud was confined to only one of its branches and not widespread.

He pointed out the various risks associated with the banking system and said there are inbuilt mechanisms to manage the risks.

He said the bank has lent United States dollars 212 million to Modi on the basis of LoU issued by PNB. The bank said it has asked Modi to come up with a formal repayment plan.

The top PNB official, however, refrained from providing details as the investigations were going on.

Thursday said it will honour its "bonafide commitments" but stopped short of accepting the entire liability of the almost Rs11,400 crore fraud, pointing out that the matter is under investigation. After having recapitalised, we will ensure all banks are cleaned up.

More news: Reliance JioPhone now listed on Amazon: Here's how to book

Indian banks, including PNB, have been stung by a surge in bad loans in the past four years, choking lending growth vital to accelerate the pace of expansion in Asia's third-largest economy.

However, the PNB officials at the branch found that there was no fund or non-fund based sanction against Mr Modi's firms by bank.

On the other hand, the BJP while declaring that no one irrespective of stature will be spared by the probe agencies, had condemned Congress' attack on the Prime Minister Narendra Modi as "baseless". "Who is responsible?" he had asked.

PNB, which is the country's second-biggest state-run lender and fourth-biggest overall by assets, PNB stock price fell almost 7.8% after bank the detected the fraudulent transactions of worth Dollars 1,771.7 million in one of its Mumbai branch.

PNB has suspended 10 officers and referred the matter to CBI for investigation.

It is unclear if the fraud is linked to another case of PNB that the bank had reported earlier this month, where a jeweler had allegedly acquired the fraudulent letters of undertaking worth 2.8 billion rupees from PNB in order to obtain loans. The LoUs were mostly used for availing credit at Hong Kong-based branches of some other Indian banks. However, the bank had no such record and it was then that the bank discovered the fake letters of undertaking and filed a complaint alleging a $44 million fraud.

Modi, along with other co-accused in the fraud, is absconding from the country and the Central Bureau of Investigation (CBI) had already issued a Look Out Circular against them on Janaury 31.


  • Tottenham boss Mauricio Pochettino apologises to Rochdale over pitch concerns

    Tottenham boss Mauricio Pochettino apologises to Rochdale over pitch concerns

    Winks could play in a box to box role while Wanyama will just sit in front of the defence and break Rochdale's counters. Maybe he has the possibility to start.
    Bachelor in Paradise's Carly Waddell & Evan Bass Welcome a Baby Girl!

    Bachelor in Paradise's Carly Waddell & Evan Bass Welcome a Baby Girl!

    Bachelor in Paradise alums Evan Bass and Carly Waddell welcomed their baby girl into the world Thursday in Nashville. Like toast with jelly cuz my dang heart is shook. "We are smitten and can't stop kissing, cuddling and adoring her".
    Paris Saint-Germain forward cites lack of experience for Real Madrid defeat

    Paris Saint-Germain forward cites lack of experience for Real Madrid defeat

    Neymar can count himself fortunate to have not been shown a second yellow card for an incident of simulation in the second period. PSG supposedly feel Di Maria has a point to prove given his controversial exit almost four years ago.
  • Patrick Brown Removed From Ontario Progressive Conservative Caucus

    Patrick Brown Removed From Ontario Progressive Conservative Caucus

    CTV News stands by its reporting. "His attacks on our journalistic practices are groundless and wrong". One of the candidates for leader of the PC Party will be making a stop in Guelph today.
    Campbell Soup organic sales fall as customer dispute…

    Campbell Soup organic sales fall as customer dispute…

    Following the transaction, the senior vice president now owns 29,119 shares in the company, valued at approximately $1,422,754.34. Stoneridge Investment Partners LLC bought a new position in Campbell Soup during the fourth quarter worth about $5,813,000.

    Stocks Carrying High Returns: Plains All American Pipeline, LP (NYSE:PAA)

    Duncker Streett reported 399 shares. 1,378,398 shares of the company were exchanged, compared to its average volume of 1,960,000. Barclays reiterated a "buy" rating and set a $26.00 price target on shares of Plains GP in a report on Thursday, October 19th.
  • Apple's new $350 speakers leaving white rings on some furniture

    Apple's new $350 speakers leaving white rings on some furniture

    Placed on other surfaces - including unoiled wood and a lacquered desk - the HomePod didn't create any rings, Miles noted. The silicone ring that keeps the HomePod from bouncing around on a table has been leaving ring stains on wood surfaces.
    Four West Brom players involved in 'stolen taxi' incident in Barcelona

    Four West Brom players involved in 'stolen taxi' incident in Barcelona

    The Baggies announced on Friday that they have opened an investigation into the matter but did not confirm any further details. Catalonia police told the BBC confirmed to them that four players were interviewed but not arrested after the incident.
    Team GB's Dom Parsons in Winter Olympics medal contention in skeleton

    Team GB's Dom Parsons in Winter Olympics medal contention in skeleton

    Team GB's new aerodynamic suits caused a cheat storm during practice days - with rivals accusing them of bending the rules. It's more that little extra edge because without getting the basics right you're not going to go fast.
  • National Enquirer Shielded Donald Trump From Playboy Model's Affair Allegation

    National Enquirer Shielded Donald Trump From Playboy Model's Affair Allegation

    In her notes, McDougal wrote that Trump "immediately took a liking to me, kept talking to me - telling me how lovely I was, etc". A manager for Clifford has claimed the agreement is no longer valid because of Cohen's disclosure about the payment.
    The Overwatch free weekend starts today

    The Overwatch free weekend starts today

    Rainbow Six Siege is free to play on all platforms (PC, PlayStation 4 and Xbox One) until 20th February. This applies to both Xbox 360 and Xbox One users.

    Analysts Estimates And Ratings Murphy Oil Corporation (MUR)

    The stock of The Sherwin-Williams Company (NYSE:SHW) has "Overweight" rating given on Tuesday, November 29 by Atlantic Securities. Other institutional investors have also modified their holdings of the company. 23 funds opened positions while 99 raised stakes.