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

Punjab National Bank, ICICI Bank, Allahabad Bank, Bank of Baroda, Central Bank of India and Corporation Bank together account for over Rs 2,000 crore of the exposure, according to an investigating agency's assessment.

February 26, 2018 / 09:44 PM IST
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Thirty-one banks, including Punjab National Bank (PNB), ICICI Bank, Allahabad Bank, Bank of Baroda and Corporation Bank, are readying to take a Rs 5,200 crore hit, thanks to loans provided to Mehul Choksi-led Gitanjali Group. The Rs 11,400 crore PNB fraud case now threatens to leave a Rs 21,000-crore hole in the banking sector’s pockets. PNB, ICICI Bank, Allahabad Bank, Bank of Baroda, Central Bank of India and Corporation Bank together account for over Rs 2,000 crore of the exposure, according to an investigating agency's assessment.

The report, seen by Moneycontrol, identifies exposure of individual banks such as Bank of Baroda, Central Bank of India, Syndicate Bank, among others at over Rs 200 crore each.

Here’s the full list of 31 banks and their exposure in the Rs 11,400 crore PNB fraud case:

PNB: Rs 587 crore
ICICI Bank: Rs 405 crore
Corporation Bank: Rs 297 crore
Bank of Baroda: Rs 265 crore
Central Bank of India: Rs 206 crore
Syndicate Bank: Rs 231 crore
Canara Bank: Rs 195 crore
Indian Overseas Bank: Rs 176 crore
Bank of India: Rs 173 crore
State Bank of Hyderabad (now merged with SBI): Rs 140 crore
Dena Bank: Rs 121 crore
J&K Bank: Rs 121 crore
Oriental Bank of Commerce: Rs 121 crore
Union Bank of India: Rs 121 crore
Exim Bank: Rs 109 crore
IDBI Bank: Rs 99 crore
Karnataka Bank: Rs 87 crore
State Bank of Bikaner & Jaipur (now merged with SBI): Rs 87 crore
SBI: Rs 52 crore
Vijaya Bank: Rs 63 crore
IndusInd Bank: Rs 58 crore
Karur Vysya Bank: Rs 30 crore
Lakshmi Vilas Bank: Rs 30 crore
Bank of Maharashtra: Rs 24 crore
Allahabad Bank: Rs 419 crore
Andhra Bank: Rs 240 crore
United Bank: Rs 207 crore
Standard Chartered Bank: Rs 100 crore
SBM Bank Mauritius Limited: Rs 75 crore
Catholic Syrian Bank: Rs 50 crore

Punjab and Sind Bank: Rs 29 crore

On February 14, PNB informed stock exchanges about Rs 11,400 crore worth of unauthorised transactions at its Brady House branch based on forged letters of undertaking (LoUs). The bank alleged that two of its officials had issued forged LoUs, which allowed Gitanjali Group and Nirav Modi Group of Companies to borrow money from overseas banks, with PNB as the guarantor of the loans.

The Enforcement Directorate (ED) is hoping to recover Rs 3,000-4,000 crore from the real estate assets seized from Nirav Modi and Mehul Choksi, sources told Moneycontrol. This is in addition to the diamonds and precious stones seized by ED from the two groups, which is valued at Rs 5,816 crore. The ED’s estimate of the value of precious stones seized from the two groups is based on the stock value, which is always higher than the market value of the stones.
Tarun Sharma
first published: Feb 26, 2018 09:29 pm

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