Allahabad Bank discloses Rs 2,000 cr exposure in PNB fraud

Allahabad Bank discloses Rs 2,000 cr exposure in PNB fraud

Allahabad Bank has an exposure of around Rs 2,000 crore by way of Letter of Undertakings issued by Punjab National Bank to Nirav Modi, the billionaire diamond merchant in the centre of a Rs 11,400-crore fraud. Image for representation only "We have an exposure of around Rs 2,000 crore in the fraud detected by PNB two days back," a source in Allahabad Bank told PTI. PNB has said that group companies of Nirav Modi and his relative Mehul Chokshi's Gitanjali Gems in collusion with two of their officials from its Brady House Mumbai branch, were fraudulently receiving LoUs since 2011. Foreign branches of a few Indian banks gave credit against these LoUs to Nirav Modi's companies to repay overseas suppliers. The source said that money had been credited to the Nostro account of PNB from the Hong Kong branch of Allahabad Bank. The bank has already filed for claims, the source said. Other banks which were involved in giving credit based on LoUs issued by PNB were Axis Bank, Union Bank and SBI

 PTI