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PNB scam: Bankers huddle to reconcile LoU claims and decide on liabilities

PNB put value of outstanding claims in fraud involving billionaire jeweller Nirav Modi at over Rs 110 bn

Abhijit Lele  |  Mumbai 

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Bankers on Saturday went into a huddle to reconcile claims after the Letters of Undertaking (LoUs) scam hit (PNB).

PNB has put the value of outstanding claims in the fraud involving billionaire jeweller at over Rs 110 billion ($1.77 billion).

Bankers declined to speak about either the outcome or their future course of action after a two hour-long meeting held at State Bank of India’s head office in Nariman Point, a business district in South Mumbai. Executives of the Delhi-based PNB joined the meeting through video-conferencing.

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The venue for the meeting was shifted at the last minute from the headquarters of the India Banks’ Association (IBA) in Cuffe Parade to avoid the media glare.

Those who attended the meeting included Usha Ananthasubramanian, managing director and chief executive of Allahabad Bank and chairman of the IBA,

D Mahapatra, managing director and chief executive of Bank of India, NS Kannan, executive director of ICICI Bank, and B Rajkumar, deputy chief executive of the IBA.

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Prior to commencement of the meeting, public sector bank executives had said the aim was to know each bank’s position, seek ways to reconcile claims, and find ways to decide on liabilities. Along with the entities owned by Nirav Modi, have also begun to recall loans to the Mehul Choksi-owned Gems and group entities. Choksi has also been named as an accused in the fraud. Besides steps to avoid a hit on their books, have begun to review their systems and processes to ensure that potential fraud is identified and corrective action taken.

First Published: Sat, February 17 2018. 23:33 IST