Today in New Delhi, India
Sep 23, 2018-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

PNB fraud: Indian Banks’ Association to meet on Saturday

The finance ministry has asked all banks review their systems and processes and ensure that potential frauds are identified and corrective action taken if required.

business Updated: Feb 16, 2018 22:51 IST
Press Trust of India, New Delhi
PNB scam,Indian Banks’ Association,Punjab National Bank
A Punjab National Bank branch in Mumbai. (PTI file photo)

Bankers’ body Indian Banks’ Association (IBA) will meet on Saturday to deliberate on the Rs 11,400 crore fraud involving billionaire diamond jeweller Nirav Modi and Punjab National Bank (PNB), sources said.

IBA chairperson Usha Ananthasubramanian was earlier the managing director of PNB.

She is currently heading Allahabad Bank, which is believed to have encashed some of the letters of undertaking (LoUs) issued by PNB.

Meanwhile, the finance ministry has asked all banks review their systems and processes and ensure that potential frauds are identified and corrective action taken if required.

State-owned PNB has been rocked by a $1.77 billion scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.

First Published: Feb 16, 2018 22:45 IST