Rs 114-bn PNB fraud case: Axis Bank says ‘sold down’ LoU transactions

Axis BankAxis Bank today said it is an active participant in the secondary market for transactions against letters of undertaking and it “sold down” certain such dealings with Punjab National Bank. Referring to media reports about certain buyer’s credit transactions with PNB, which is at the centre of a Rs 114 billion fraud case, it said that in the normal course of business, the bank undertakes such transactions against letters of undertakings (LoUs) issued by other banks through its overseas branches. “These amounts are then credited to the LOU issuing bank’s Nostro accounts.

Source: Business Standard