MUMBAI: Punjab National Bank has revealed additional unauthorised transactions related to the scam by billionaire diamantaire Nirav Modi and his uncle and business partner, Mehul Choksi, increasing the estimated size of the fraud by $204 million (Rs 1,322 crore). This increase means that the total fraud now amounts to nearly $2 billion (Rs 12,622 crore) as against the original estimated $1,772 million (over Rs 11,300 crore).
The value of the additional unauthorised transactions is almost equal to PNB’s entire net income of Rs 1,320 crore for fiscal year 2017. The disclosure was made to stock exchanges late on Monday night.
The fresh letters of undertaking (LoUs) were understood to have been discovered after being reported by overseas bank branches, which checked their portfolio in light of the recent fraud. Total exposure of banking sector over ?20,000 crore.
We have to inform that the quantum of reported unauthorised transactions can increase by $204 million,” Punjab National Bank (PNB)+ said in a filing to stock exchanges on Monday night. In a separate filing, PNB denied media reports that it has been asked to pay for fraud liabilities by the government.