Scam-hit Punjab National Bank (PNB) has submitted a report to the Central Vigilance Commission (CVC) on the ₹12,700-crore fraud perpetrated by diamantaire Nirav Modi at the bank’s Brady House branch in Mumbai.

The report details the systemic lapses that may have led to this fraud and also the steps taken later by the bank in terms of compliance with the CVC guidelines on staff transfer, etc., sources close to the development said.

It may be recalled that Chief Vigilance Commissioner KV Chowdary had, at the CVC office in the Capital on February 19, convened a meeting with the PNB top brass to discuss the Nirav Modi-perpetrated scam that shocked the country and its banking system.

PNB’s Chief Vigilance Officer had to make a presentation to the CVC. The bank was then directed by the CVC to submit a report in 10 days.

It is widely believed that PNB had violated existing CVC guidelines on staff/officer transfer with its Deputy Manager Gokulnath Shetty, who is the main person behind the issuance of fraudulent letters of undertaking (LoUs), remaining in the same branch in the same department for six to seven years.

Meanwhile, PNB has a new executive director in LV Prabhakar, who has come in place of Ram S Sangapure. The latter had demitted office on February 28 after attaining the age of superannuation.

SBI Hong Kong

SBI Hong Kong Branch on Monday issued a statement that it does not have any exposure to any corporates/banks based on the LoUs/LCs issued by PNB’s Brady House branch.

Further, SBI’s Hong Kong branch does not have any exposure to the Nirav Modi group of companies and/or the Mehul Choksi group of companies whose names are linked to the PNB fraud, the statement added.

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