INSUBCONTINENT EXCLUSIVE:
Mumbai: Scandal-hit Punjab National Bank (PNB) has gone for a four-way split of its loans operations and created a focused offsite centre
for monitoring all foreign exchange-related business to ensure that the recent Nirav Modi like episode that created a Rs 13,000-crore crater
in its balance sheet does not recur, its chief executive told ET.
These efforts are expected to help the state-run bank better monitor its
by a Rs 13,000-crore scandal last fiscal with a misuse of letter of undertaking (LoU) that enables importers to avail credit from other
banks based on its guarantee
It turned out that there was no collateral for the LoUs and the bank realised that fashion jeweller Nirav Modi and his uncle Mehul Choksi
light that its employee Gokulnath Shetty issued LoUs to overseas companies related to Nirav Modi without authorisation from higher
LoU has been paid up to March 31, and all the dues would be paid
