Punjab National Bank (PNB) Managing Director and Chief Executive Officer (CEO) Sunil Mehta on Thursday broke his silence on the Rs 114-billion alleged scam involving diamond merchant Nirav Modi and his maternal uncle Mehul Chinubhai Choksi, saying the public sector bank (PSB) would honour all genuine commitments to other banks. The PNB chief also said Modi had come out with “vague offers” to repay the amounts due and had not submitted a concrete plan. He added the total exposure of the bank to the two groups of companies involved was around Rs 1.7 billion. “We will come out of the present situation. We are in discussions with stakeholders, including other banks that are party to this development. We will resolve it and honour all bona fide commitments with other banks,” Mehta said, during a press conference a day after the country’s second-largest PSB made public that it had detected fraudulent and unauthorised transactions. The PNB chief, however, dodged a query on whether the bank would be liable to pay up the entire Rs 114 billion detected in the fraudulent transactions that took place using the international financial communication system, SWIFT, bypassing the bank’s core banking system with the help of bank staff at a Mumbai PNB branch. “We are in discussions with all the lenders. It will be decided after the investigation.
Source: Business Standard