PNB says fraud amount can rise by Rs 1,330 crore to Rs 12,700 crore

In yet another shocker to the country, Punjab National Bank has revealed that the quantum of the fraud it reported a couple of weeks ago could increase to Rs 12,700 crore, up from Rs 11,400 crore.

"In continuation to our filing with Stock Exchanges on 14.02.2018, we have to inform that quantum of reported unauthorized transactions can increase by USD 204.25 million (approx)," PNB said in a late night filing to the stock exchanges.

On February 14, the bank had reported unauthorised transactions worth USD 1.77 billion (approximately Rs 11,400 crore) after it had detected some fraudulent transactions in its Brady House, Mumbai branch.

Also read: PNB fraud case: Gitanjali Group exposure may leave a Rs 5,200-crore hole in the pockets of 31 banks.

The lender said that fradulent Letters of Undertaking (LOUs) were issued in an apparent connivance of PNB officials to favour diamond and jewellery businessmen Nirav Modi's and his uncle Mehul Choksi's group companies.

Based on these LOUs, other banks including State Bank of India, Axis Bank, Canara Bank and Allahabad Bank, among others, gave loans to the two group firms.

So far, the total dues, including the direct loans given by consortium of lenders previously, to both groups is estimated to be over Rs 21,000 crore.

The Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) are already investigating the matter, while Modi and Choksi are said to have fled from the country to avoid being interrogated.