Today in New Delhi, India
Jul 19, 2019-Friday
New Delhi
  • Humidity
  • Wind

PNB looking to monetise assets, in talks with interested parties: Source

Punjab National Bank will look to sell assets through a tendering process.

business Updated: Feb 16, 2018 22:08 IST
Reuters, New Delhi
Nirav Modi,PNB case,Nirav Modi fraud
The logo of Punjab National Bank is seen outside a branch of the bank. (Reuters File Photo)

Fraud-hit Punjab National Bank is considering monetising its real estate assets, including a giant office space in New Delhi worth an estimated 50 billion rupees ($778.63 million), a bank source with direct knowledge of the matter told Reuters.

The bank was looking to expedite the process after it said this week it has been hit with a $1.77 billion loan fraud (Rs 11,400 crore) , the biggest bank scam in the country’s history.

The bank would look to sell assets through a tendering process. “We are in talks with interested parties,” said the source, who declined to be identified due to the sensitivity of the matter.

Indian investigators raided the offices of jewellery retailer Gitanjali on Friday in a widening probe into the fraud.

The case is centred around diamond billionaire Nirav Modi who is accused of colluding with bank employees to fraudulently obtain advances for payments to overseas suppliers to his business stretching from New York to London to Beijing.

Morgan Stanley estimated on Thursday if PNB had to assume all the liability from the fraud it would need 80 billion rupees ($1.25 billion) in additional capital, which at the stock’s current valuation would mean a 14% dilution.

First Published: Feb 16, 2018 22:07 IST