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IndusInd Bank says has no direct exposure to PNB scam

The statement comes more than a week after PNB disclosed that conduct of its officials at the Brady House branch in the financial capital had resulted in a potential fraud of USD 1.7 billion.

business Updated: Feb 20, 2018 18:10 IST
Press Trust of India, Mumbai
IndusInd Bank,PNB fraud,Nirav Modi
The IndusInd statement said the fraud has taken place due to non-adherence of procedures and norms laid down.(Photo: LiveMint)

Private sector lender IndusInd Bank on Tuesday said it has no direct or indirect exposures to firms floated by scam-hit Nirav Modi.

The bank, one of the most active lenders in the gems and jewellery sector, however has a “small” exposure to Gitanjali Gems, promoted by Modi’s uncle Mehul Choksi which is also an accused in the Rs 11,400-crore fraud.

“IndusInd Bank has no direct credit exposures to Nirav Modi nor any indirect credit exposures on the basis of the letters of undertaking (LOUs) issued by Punjab National Bank (PNB),” the lender said in a statement.

“As regards Gitanjali Gems, the bank has a small, two- digit exposure, not linked to any LOUs,” it added without revealing the amount.

The statement comes more than a week after PNB disclosed that conduct of its officials at the Brady House branch in the financial capital had resulted in a potential fraud of USD 1.7 billion.

The IndusInd statement said the fraud has taken place due to non-adherence of procedures and norms laid down.

It termed this as a “stray incident” which will not have any contagion effect on its overall gems and jewellery lending business.

First Published: Feb 20, 2018 12:17 IST