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PNB-Nirav Modi case: Bank says fraud amount could be Rs 1,323 crore more

In a filing to the BSE late on Monday night, PNB said the amount of unauthorised transactions in the Nirav Modi-connected fraud case could go up by more than Rs 1,300 crore.

business Updated: Feb 27, 2018 09:08 IST
Press Trust of India, New Delhi
PNB,Nirav Modi,PNB fraud case
Enforcement Directorate (ED) officials outside a Punjab National Bank (PNB) branch in Thane after they seized cash, jewellery and bonds worth several crores during a raid in relation to the Nirav Modi-PNB fraud case on February 20, 2018.(PTI Photo)

Amid the multi-agency probe into the Punjab National Bank (PNB) fraud case, the state-run bank on Tuesday said the amount of fraudulent transactions could be Rs 1,300 crore more than the current estimate of about Rs 11,400 crore.

The latest announcement from the public sector lender assumes significance against the backdrop of the probe going on into the Rs 11,400 crore fraud case, which is already one of the biggest in the Indian banking sector.

On February 14, the bank had detected the fraud wherein billionaire jeweller Nirav Modi and associates had allegedly acquired fraudulent letters of undertaking (LoUs) from one of the branches of the PNB for overseas credit from other Indian lenders.

In a filing to the BSE late on Monday night, the bank said the amount of unauthorised transactions could go up by more than Rs 1,300 crore.

“...We have to inform that quantum of reported unauthorised transactions can increase by USD 204.25 million (approximately),” the filing said.

At the current exchange rate, the amount comes to around Rs 1,323 crore.

Read | Jaitley slams regulators over PNB fraud, says such cases affect ease of doing business

The bank also referred to its filing made on February 14 when it first disclosed the fraud and at that time, the “fraudulent and unauthorised transactions” was estimated at US $1.77 billion (about Rs 11,400 crore).

The fraud was perpetrated by way of fraudulent Letters of Undertaking (LoUs) generated in the name of Punjab National Bank.

First Published: Feb 27, 2018 08:37 IST