PNB Fraud: Axis Bank says it has sold all transactions against PNB LoU’s
In a notice to stock exchanges, Axis Bank said it is “an active participant in the secondary market for such transactions, and the bank has sold down all of the referred transactions” with PNB.
Axis bank has informed the stock exchanges on Thursday that the bank has sold down all the transactions which it had undertaken against the Letter of Undertakings (LoUs) issued by Punjab National Bank. These transactions were however undertaken against authenticated SWIFT LoUs, the bank assured.
“Äxis bank is an active participant in the secondary market for such transactions, and the bank has sold down all of the referred transactions,” said the notice.
The private sector lender also added that such transactions are undertaken as part of the normal course of trade business through its overseas branches. The amounts are typically credited to the LoU issuing bank’s nostro accounts.
The clarification from Axis Bank comes a day after the PNB acknowledged that it has detected financial fraud amounting to Rs 11,000 crore in its Mumbai branch. The bank has accused jeweller Nirav Modi and the companies linked to him for acquiring LoUs to obtain loans from banks abroad.
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