PNB Fraud: UCO Bank Says It Has More Than ₹2600 Crore Exposure

| February 18 , 2018 , 13:07 IST

UCO Bank on Saturday said that it had an exposure of 411.82 million dollars in the mega PNB fraud.

In a mandatory filing to the Securities and Exchange Board of India (SEBI) the state-owned bank’s statement reads, “Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, we hereby disclose the following information for your perusal and dissemination.  In the normal course of trade business, our Hong Kong branch has been negotiating export documents against Letters of Credit issued through authenticated SWIFT message by 'Punjab National Bank', after receiving acceptance through authenticated SWIFT message. The applicants for these Letters of Credit includes few of the Corporate Clients associated with the incident of recent fraud happened in Punjab National Bank.” 

The statement adds that the bank has an exposure of 411.82 million dollars and it is fully confident to receive the payment from PNB.

“The outstanding exposure involved in the transactions is approximately USD 411.82 Million and the Bank is fully confident to receive the payment from Punjab National Bank” the statement concludes.

Punjab National Bank which has been severely hit by the mega fraud has already issued a statement that it will honour all bonafide commitments.

Also Read: PNB Has Capability & Capacity To Come Out Of The Nirav Modi Situation: MD Sunil Mehta

Responding to a question, PNB Managing Director Sunil Mehta said, “If the entire onus is on us, we’ll own the responsibility, we are not going back from it.”

The shares of UCO bank were trading at a five year low at Rs 28.50 on the National Stock Exchange on Friday.