Moneycontrol
Last Updated : Feb 28, 2018 03:05 PM IST | Source: Moneycontrol.com

ICICI Bank shares fall 2.6% on loan exposure to Gitanjali Group

According to CBI officials, a loan totaling Rs 5,280 crore was given to the Gitanjali Group by a consortium of 31 lenders.

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ICICI Bank shares declined 2.6 percent intraday Wednesday after the lender disclosed its loan exposure to Gitanjali Group that involved in PNB fraud case.

Chanda Kochhar-led ICICI Bank has informed that it has no exposure to Nirav Modi group of companies, but have given working capital loans along with a consortium to Gitanjali group. It has added that no LoUs have been issued to both the companies.

"We have not issued any Letter of Undertaking (LOU) nor do we have any buyer’s credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies,” it said in a statement on Tuesday.

The statement comes amid questioning of ICICI Bank's Executive Director NS Kannan by the Central Bureau of Investigation (CBI) on Tuesday relating to the Punjab National Bank (PNB) scam worth Rs 12,700 crore.

According to CBI officials, a loan totaling Rs 5,280 crore was given to the Gitanjali Group by a consortium of 31 lenders.

The country is dealing with one of the biggest banking frauds worth Rs 11,400 crore that came to light on February 14, when PNB informed the stock exchanges of multiple LoUs issued fraudulently by two of its employees to two jewellery merchant firms since 2011. This contingent liability, PNB said late on Monday night could increase by Rs 1,330 crore.

Diamond kingpin Nirav Modi’s three firms and his uncle Mehul Chokshi’s Gitanjali Group allegedly used these LoUs to seek loans from foreign bank branches of Indian banks and a foreign lender.

At 14:40 hours IST, the stock price was quoting at Rs 313.85, down Rs 5.80, or 1.81 percent on the BSE.
First Published on Feb 28, 2018 03:05 pm
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