Jammu and Kashmir Bank today said it had "no direct exposure" to the companies of Nirav Modi and was not affected by the fraudulent Letters of Undertaking (LoUs) issued by the Punjab National Bank.
The bank has no exposure against LoUs issued by PNB on behalf of some of its gems and jewellery sector clients in news.
Nirav Modi has allegedly cheated the country's second largest bank through issuance of LoUs in connivance with a few officials of the bank from one of its Mumbai branch.
The rupee took another beating after a brief solace and plunged by a staggering 28 paise to end at a new three-month low of 65.04 against the US dollar even as importers rushed to cover unhedged positions amid fears over an imminent Fed rate hike.
This is in response to the letter written, earlier this week, by the diamond kingpin alleging that PNB’s public disclosure of “erroneous liability resulted in a media frenzy” that jeopardised his ability to discharge the dues of the group to the banks.
The NDA government also believes that banks need to be in the public sector so that the party can achieve its goals.
It also seized nine high-end luxury cars of Modi as part of its investigation against him under the criminal provisions of the Prevention of Money Laundering Act (PMLA).
India's second biggest state lender this month revealed the country's biggest loan fraud, which it alleges was committed by two junior officials at a Mumbai branch, who issued unauthorised "letters of undertaking" (LOU) via SWIFT, for firms linked to a billionaire jeweller Nirav Modi and his uncle Mehul Choksi.
The country's second-largest lender has also dismissed media reports that it has imposed restrictions on withdrawals.
In five trading sessions, more than Rs 12,700 crore of investors' wealth has already been wiped out.
Moody's has also placed the Delhi-based lender's Baseline Credit Assessment (BCA) and adjusted BCA of Ba3 and the Counterparty Risk Assessment (CRA) of Baa3(cr)/P-3(cr) under review for downgrade.
The fraud-- the biggest ever in the banking history-- has raised questions on both internal and external risk controls as well as the quality of management supervision considering that the fraud went undetected for several years, it said.
The scam-hit state-owned bank had asked the four group companies to pay the "outstanding dues" amounting to Rs 1045.88 crore "within days".
In four trading sessions, the stock has fallen 28 percent and suffered an erosion worth Rs 10,975.16 crore from its market capitalisation.
Most of his tweets and re-tweets -- from February 15-17 -- targeted the Central government but some directly referred to the prime minister, something Kejriwal has avoided doing since AAP's poor electoral performances last year.
The central probe agency also conducted searches at 34 other locations in various cities, including Mumbai, Pune, Aurangabad, Thane, Kolkata, Delhi, Lucknow, Bengaluru and Surat, in connection with its probe.
The suggestion comes in the backdrop of the USD 1.77 billion (about Rs 11,400 crore) scam in Punjab National Bank involving billionaire jeweller Nirav Modi.
The stock opened lower and slumped further 7.16 per cent to its 52-week low of Rs 116.65 on BSE. At NSE, shares of the company dived 6.77 per cent to hit a one-year low of Rs 117.05.
The meeting in Delhi will also be attended by senior Finance Ministry officials and representatives of the Reserve Bank of India (RBI), sources said.
This Nirav Modi-chase last week was a déjà vu, except for different names and faces such as Vijay Mallya and Jatin Mehta. Also, barring one, rest of the defaulters hail from gems and jewellery sector
This blog will keep you posted on the recent Rs 11,400 crore PNB fraud.
The raids came after the ED filed a money laundering case of alleged fraud of Rs 280-crore against Modi, his wife Ami, brother Nishal and business partner Mehul Choksi and others
News of the alleged fraud sent PNB's shares down 12 percent on Thursday, their biggest daily percentage fall since May 2004, after falling 9.8 percent on Wednesday when it made its disclosure.
HDFC Prudence Fund, HDFC Equity Fund and HDFC Mid-cap Opportunities held significant shares of public sector bank, Punjab National Bank
For bulls to regain control of this market, Nifty should reclaim 10,600 levels to extend its upmove towards 10,700-10,800 levels. A tight stop loss below 10,398 should be kept for all long positions, suggest experts.