Axis bank writes to BSE over disclosure requirements in Nirav Modi fraud case

In wake of the fraud being detected by Punjab National Bank (PNB), Axis Bank on Thursday wrote to National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), notifying the Buyer's Credit transactions it has undertaken with PNB.

In the letter, the bank informed that it does undertake transactions against Letters of Undertakings (LoU) issued by other banks through its overseas branches, and that it has in the past undertaken such transactions with PNB against their authenticated SWIFT LoUs.

"Axis Bank is also an active participant in the secondary market for such transactions, and the bank had sold down all of the referred transactions," the letter further read.

It is notable that the Hong Kong branch of Axis Bank was one of the Indian banks in whose favour the fraudulent LoUs were issued.

On February 5, the Central Bureau of Investigation (CBI) booked noted jewellery designer Nirav Modi, his brother Nishal Modi and Punjab National Bank (PNB) officials for cheating the bank to the tune of Rs 280.7 crore.