PNB asks for data info from peer banks; no condition yet on LOUs payout

Punjab National Bank has asked for certain information from peer banks but no condition has been set for payouts related to LoUs in the Rs 12,968 crore scam allegedly committed by Nirav Modi and his firms, sources said.

Bankers aware of the development said as the matter is under investigation by the CBI, no final call on LoU payouts can be taken as of now.

"PNB has been calling for certain information from other banks to ascertain if there were any deficiency or laxity on the part of those other banks, if they also had some system lacunae or might have compromised on their system, things like that," a bank official said on the condition of anonymity.

On what has been derived among the banks on the liability of PNB towards other banks to pay against the Letters of Undertakings (LOUs) on the basis of which peer lenders made import credit payments to Nirav Modi and his firms, the official said, "As the investigations are going on, there is no final call on LOUs payouts."