PNB posts net loss of Rs 13417 crore for Q4

Billionaire jeweller Nirav Modi is at the centre of the over $2 billion PNB fraud

Billionaire jeweller Nirav Modi is at the centre of the over $2 billion PNB fraud

"PNB scam case: Central Bureau of Investigation submitted charge-sheet in Special CBI Court in Mumbai", the news agency ANI reported.

Usha Ananthasubramanian, Managing Director and CEO of the Allahabad Bank, who held the same position at Punjab National Bank earlier, had been named as an accused along with other senior officials, according to the chargesheet.

Yesterday, the bank board, following government diktat, had divested two executive directors - K V Brahmaji Rao and Sanjiv Sharan - of all financial and executive powers.

Allahabad Bank board is likely to meet in a day or two.

The central government owns controlling stakes in state-run lenders including Allahabad Bank and PNB. The agency alleged that the proceeds of buyer's credit availed from overseas banks on the basis of LoUs of the PNB were dishonestly and fraudulently diverted to pay off the oustanding liabilities of the three accused firms, directly and indirectly controlled by Nirav Modi.

"The full write-off is not yet done", said Prabhakar, adding he would wait for comments from the management on growth prospects for the bank.

The Reserve Bank of India, meanwhile, asked Allahabad Bank, which is already under the prompt corrective action mechanism, to restrict expansion of risk-weighted average and reduce exposure to un-rated and high-risk advances, the filing said.

Since these two executive directors did not attend today's board meeting to consider and approve the fourth quarter financial result, so their signatures are not on the annual financial results.




The chargesheet says Nirav, his brother Nishal Modi, and Subhash Parab, an executive in Nirav's firms, conspired for issuance of fraudulent Letters of Undertaking (LoUs).

Modi's group companies - Diamonds R US, Stellar Diamonds, and Solar Exports - are also named in the chargesheet as borrowers.

A man reads a newspaper outside a branch of Punjab National Bank (PNB) in Ahmedabad, March 20, 2018.

Reconciliation of bank's core software (called CBS) and SWIFT messages was not done despite repeated circulars caution notices of the RBI which allowed a deputy manager to issue these guarantees bypassing any scrutiny by the bank, they said.

So far, the 19 arrests made include PNB officials Gokulnath Shetty, Manoj Kharat, Bechhu Tiwari, Yashwant Joshi, and Praful Sawant.

The bank said that provisions worth Rs 3,120 crore have been made against accounts where stressed asset schemes were under implementation.

As of Monday, PNB stock had tumbled about 44% since the Nirav Modi fraud came to light.

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