Punjab National Bank (PNB), the public sector lender that got rocked by the $1.8 billion scam, has stated that it has enough assets to meet any kind of liability. In a statement to the stock exchanges, the country’s second-largest lender clarified that this massive scam will not have any material impact on the bank’s day-to-day operations.
Nirav Modi, who fled the country after the unearthing of the massive scam, stated that the bank closed all his options of paying back the loan by going public. Modi also stated that the bank has destroyed his reputation and his company’s brand thereby closing all the options for him to repay the loan amount.
Stock exchanges in the country have sought a clarification from the bank on this comment. The stock exchanges asked the bank on why it has not informed them about filing an FIR with the CBI about the ongoing fraud.
The bank responded stating that any news about the involvement of CBI in the investigation would have alerted the fraudster and spoiled the recovery process. The bank also notified that it has simultaneously informed its Board, BSE, and NSE about the initial fraud as well as the enhanced fraud amount.
The major scam unearthed by PNB has become sensational across the country with political parties demanding an explanation from the government and the Reserve Bank. While accepting the involvement of its own officials in the scam, PNB also blamed other banks for their negligence as they discounted the bills based on PNB’s letter of understanding.
In a statement to Nirav Modi, the bank asked him to come up with an implementable plan to pay back the loan amount.