• search
For Quick Alerts
For Daily Alerts

Allahabad Bank discloses Rs 2,000 cr exposure in PNB fraud


Allahabad Bank has an exposure of around Rs 2,000 crore by way of Letter of Undertakings issued by Punjab National Bank to Nirav Modi, the billionaire diamond merchant in the centre of a Rs 11,400-crore fraud.

Image for representation only

"We have an exposure of around Rs 2,000 crore in the fraud detected by PNB two days back," a source in Allahabad Bank told PTI.

PNB has said that group companies of Nirav Modi and his relative Mehul Chokshi's Gitanjali Gems in collusion with two of their officials from its Brady House Mumbai branch, were fraudulently receiving LoUs since 2011.

Foreign branches of a few Indian banks gave credit against these LoUs to Nirav Modi's companies to repay overseas suppliers.

The source said that money had been credited to the Nostro account of PNB from the Hong Kong branch of Allahabad Bank.

The bank has already filed for claims, the source said.

Other banks which were involved in giving credit based on LoUs issued by PNB were Axis Bank, Union Bank and SBI.


For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more