Will take full responsibility if the PNB fraud probe places onus on the bank: CEO Sunil Mehta

Nearly 30 hours after reporting a Rs 11,000-crore fraud to the bourses, Punjab National Bank  (PNB) managing director and chief executive Sunil Mehta broke his silence spelling out details of how the scam was detected and reported first by the bank.

Mehta, said the country’s second-largest PSU bank was committed to clean and responsible banking. PNB will take full responsibility is investigations place the onus of the fraud on the bank, he said. The bank will conduct a forensic audit if the need arises, he assured.

So far, PNB has denied the liability stating unauthorised transaction but so far not elaborated on what impact the fraud may have on its financials, neither has it named other banks. It has cautioned 30 banks to stay alert on any further such unauthorised transactions.

Mehta reiterated the bank has the capacity and capability to come out of the situation.

Here are 10 key points from PNB MD & CEO Sunil Mehta's press conference:

1) PNB was the first to detect the Nirav Modi fraud in the third week of January.

2) The fraud was detected when the customer came for LoU renewal on January 25.

3) The bank reported it to the CBI on January 29 and an FIR was registered in January 31.

4) After the fraud was detected, PNB internally audited other bank branches and found no wrongdoing. Fraud was established only in the Mumbai branch.

5) PNB will take full responsibility if investigations place the onus on the bank.

6) The Nirav Modi fraud dates back to 2011.

7) There is no connection between Vijay Mallya and this case — do not link up the two.

8) Some of the PNB staffers involved in the fraud have been suspended and named in the FIR.

9) PNB seeks breathing time — The bank is cooperating with investigating agencies.

10) PNB will not spare any person involved in wrongdoing. PNB confident and committed to pursuing clean and responsive banking. PNB will not shirk away from responsibility, will take action against those indulging in fraudulent means. PNB will conduct forensic audit if the need arises.