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Fraud-hit PNB looking to sell real estate assets worth Rs 50 bn: Source

CBI raided the offices of jewellery retailer Gitanjali on Friday in a widening probe into the fraud

Reuters  |  New Delhi 

Photo: Kamlesh Pednekar

Fraud-hit is considering monetising its real estate assets, including a giant office space in New Delhi worth an estimated Rs 50 billion ($778.63 million), a bank source with direct knowledge of the matter told Reuters.

The bank was looking to expedite the process after it said this week it has been hit with a $1.77 billion fraud, the biggest bank scam in the country's history.

The bank would look to sell assets through a tendering process. "We are in talks with interested parties," said the source, who declined to be identified due to the sensitivity of the matter.

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Central Bureau of Investigation (CBI) raided the offices of jewellery retailer on Friday in a widening probe into the fraud.

The case is centred around diamond billionaire Nirav Modi who is accused of colluding with bank employees to fraudulently obtain advances for payments to overseas suppliers to his business stretching from New York to London to Beijing.

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Morgan Stanley estimated on Thursday if PNB had to assume all the liability from the fraud it would need Rs 80 billion ($1.25 billion) in additional capital, which at the stock's current valuation would mean a 14 per cent dilution.

First Published: Fri, February 16 2018. 19:55 IST