PNB Has Capability & Capacity To Come Out Of The Nirav Modi Situation, Says MD Sunil Mehta

| February 15 , 2018 , 15:30 IST

Punjab National Bank (PNB) Managing Director Sunil Mehta on Thursday addressed a press conference in New Delhi, assuring the public that the bank was taking all measures against the fraud case of jeweller Nirav Modi who scammed the bank of a total of Rs 11,360 crore.

"The scam was first detected by our officials at first in 2011 and we had reported it to the concerned agencies," said Punjab National Bank MD Sunil Mehta on Nirav Modi.

"We detected the fraud in the third week of January. We got to know that two of our employees conducted some unauthorised transactions. The bank initiated criminal action against our staff members," said Mehta.

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"Mainly foreign branches of Indian banks, barring one, are involved. No person involved in this from our side will be spared. Nirav Modi and his group are coming out with some vague offers that are currently under consideration," he said.

"This is a standalone incident. It has taken place only in one of our branches," the PNB MD said.

"The bank has the capability and capacity to come out of the situation. If the entire onus is on us, we will pay it. We are not backing out of it but nobody else will be a beneficiary of it. We will honour all our bona fide commitments. We do not encourage any wrong or fraud practices, we will take this up as a cancer cleansing process," he said.

The second-largest state-run bank of India, Punjab National Bank on Wednesday had said that it had detected "fraudulent and unauthorised" transactions worth about $1.77 billion (Rs 11,360 crore approx). Since the statement was released, PNB stocks crashed by over 13 percent.

The accused jewellery designer Nirav Modi is said to be in Switzerland currently, where he went on January 1, while the CBI received the complaint from PNB on January 29, 2018.