PNB has detected a USD 1.77 billion (about Rs 11,400 crore) scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking from a branch in Mumbai to secure overseas credit from other Indian lenders.
The Enforcement Directorate today conducted multiple searches in connection with a money laundering case against Modi and others following a complaint by PNB.
Talking to reporters on the PNB fraud case, Financial Services Secretary Rajiv Kumar said the bank will make the required provisioning and it has "sufficient" funds for it.
"Whole lot of assets will be recovered. Nobody will be spared," Kumar said.
The secretary further said that the issue is an "isolated case of a single branch" and all possible action will be taken against the guilty persons.
"This is not likely to escalate to other banks. We have already frozen the case," he said, adding all other banks have been alerted about the case.
PNB has suspended 10 officers and referred the matter to CBI for investigation.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)