Fake LoUs: PNB agrees to honour Rs 65 bn of other banks' pending claims

The decision came after the finance ministry's meeting on Tuesday with a few bankers, including those from Punjab National Bank, to break the stalemate between banks

Punjab National Bank (PNB) on Wednesday decided to clear all other banks’ dues, amounting to Rs 65 billion, to be paid before March 31 in relation to the Rs 140-billion fraud case.

“The board of PNB, in a meeting held on Wednesday, has approved payment related to letters of undertaking (LoUs) and foreign letters of credit (FLCs) issued by the bank which mature on or before March 31, 2018,” PNB said in a statement.

The decision will help the bank settle claims worth Rs 65 billion against LoUs issued to seven banks — Union Bank of India, Allahabad Bank, Bank