Money & Banking

Enough assets to meet any liability, says PNB

PTI Mumbai | Updated on February 22, 2018 Published on February 22, 2018

State-owned PNB today said it has followed lawful avenues to recover its dues following the Rs 11,400-crore swindling of funds allegedly by jewellery designer Nirav Modi and associates. The country’s second largest public sector lender also reaffirmed that it has enough assets to meet any liability.

“We have followed lawful avenues available to us as per law of the land to recover our dues,” the bank said in a regulatory filing. Stock exchanges had sought clarification on Modi’s comment that “PNB has closed all options to recover dues by going public”.

The bank had disclosed about the scam on February 14 through a regulatory filing. On why it did not inform the stock exchanges about the filing of an FIR with CBI at the occurrence of the event, PNB said: “Since law enforcing agencies were assigned to investigate the matter, any news in the public would have altered the fraudster, affecting recovery”.

The bank said on the basis of a preliminary investigation report, it had simultaneously informed its board and the BSE and NSE of an initial fraud case of Rs 280.7 crore. “Upon receiving a further investigation report enhancing the fraud amount to Rs 11,394 crore, FMR (Fraud Monitoring Return) with RBI, FIR with CBI were filed in the evening of February 13, 2018, and BSE and NSE were informed on February 14 around 9 am,” the bank said.

About the impact of the scam on the financials and operations of the bank, it said: “We have enough assets/ capital to meet any liability, which is decided as per law”.

Published on February 22, 2018
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