Scam-hit PNB may need to provide for around Rs 60 bn in losses this quarter

Bank to pay if RBI declines its relaxation plea

Punjab National Bank may have to provide for around Rs 60 billion in losses in this quarter due to the Rs 127 billion scam related to the fraudulent Letters of Undertaking (LoUs).

“Our preliminary estimates show we may have to provide for around Rs 60 billion in the balance sheet for the quarter ending on March. The due date for LoUs amounting to Rs 60 billion is falling in the present quarter. This will be a contingent liability for the bank,” said a senior executive, on condition of anonymity.

According to the government lender’s complaint to the Central Bureau of Investigation (CBI),