What actually happened in PNB?

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What actually happened in PNB?

India’s Punjab National Bank (PNB), the second-biggest public sector lender, stunned the country’s financial sector when it announced in 2018 that it had discovered fraudulent transactions worth $1.77 billion (about Rs11,400 crore) at a single branch in Mumbai.

How did Nirav Modi fraud PNB?

The Punjab National Bank scam relates to fraudulent letter of undertaking worth Rs 10,000 crore issued by the bank. The key accused in the case were jeweller and designer Nirav Modi, his maternal uncle Mehul Choksi, and other relatives and some PNB employees.

Which bank did fraud recently?

Indian Bank reports fraud of over Rs 33cr to RBI ​​Two non-performing loan accounts, Raj Events and Entertainment and Capricorn Food Products India, have been declared as fraud and reported to the RBI as per regulatory requirement, the bank said in a stock exchange filing on Tuesday.

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Which payment instrument was banned in India after the infamous fraud involving the Punjab National Bank?

In March 2018, the Reserve Bank of India scrapped banking instruments such as the Letter of understanding (Lou) and Letter of Comfort (LoC) that in an attempt to plug a loophole and improve banks’ due diligence in trade credit.

Is PNB a loss?

In the third quarter of 2019-20, PNB’s net loss stood at Rs 492 crore. State-owned Punjab National Bank posted a pre-tax loss of Rs 969 crore in the fourth quarter (Q4FY20), compared to a loss of Rs 7,209 crore in the corresponding period last year.

How is Mehul Choksi done fraud?

Mehul Choksi and his nephew Nirav Modi are wanted in India for allegedly siphoning Rs 13,500 crore of public money from the state-run Punjab National Bank (PNB) using fraudulently acquired letters of undertaking (LoUs).

How did Mehul Choksi do fraud?

A special PMLA court in March 2018 issued non-bailable arrest warrants against Choksi and his nephews Nirav Modi and Neeshal Modi. They allegedly colluded with the PNB Bank officials to defraud the bank of over Rs 14,000 crore. The scam is said to be the biggest in India’s banking history.

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Is Punjab National Bank Safe?

Over the long history of the Bank, 7 banks have merged with PNB. Since it is a government owned bank, the deposits of the bank are safe. It has a very long history and track record of serving people in the country.

Why is PNB making losses?

State-owned Punjab National Bank (PNB) has said its standalone net loss narrowed to Rs 697.20 crore in the fourth quarter ended March 31, due to lower provisioning against bad loans. The second largest public sector lender had posted a loss of Rs 4,750 crore in January-March period of 2018-19.

How did Mehul Choksi cheated on PNB?

The fresh chargesheet is significant as the probe agency had found Choksi responsible for defrauding PNB to the tune of ₹6,498 crore by forging 142 letters of understanding (LOUs), 58 foreign letters of credit (FLCs) with 311 fake invoices to avail credit, the sources added.