Skip to content
Search

Latest Stories

PNB Fraud: RBI officials under CBI's scanner

India's investigating agency Central Bureau of Investigation has questioned four officers belonging to the Reserve Bank of India in connection with the Rs 13,000 crore Punjab National Bank (PNB) fraud.

The officials belong to the foreign exchange department of the central bank, The Indian Express reported, adding that they were also questioned on the fraud Letters of Undertaking (LoUs) issued to diamond billionaire Nirav Modi’s firms.


The scam came to light on February 14 and the government has appointed the CBI and ED on the case, which is still ongoing. A few PNB officials posted at the Brady House branch of the bank have been accused of generating fake letters of credit that helped Modi's firms loan money from a few foreign branches of the Indian banks. Efforts have been made to bring Modi back to India, but he has not shown any inclination to co-operate with India's investigating agencies.

Meanwhile, PNB's MD and CEO Sunil Mehta recently told Business Standard that the bank was confident of recovering from the losses of Rs 130 billion scam related to Modi and his uncle Mehul Choksi. The bank was also set to file a recovery suit to seal assets of the firms involved in the fraud.

On being asked if PNB feels like it has been made a scapegoat in this incident when other banks were also involved in the transactions with Modi and Choksi, Mehta said they have "lived by the reputation of PNB."

"We have said the letters of undertaking (LoUs) were issued by the employees of PNB. We said even if they were issued fraudulently, PNB will honour its commitment because it’s the matter of reputation of the bank. Also, I will not comment on it as it is a subject matter of investigation. Meantime, to ensure other banks don’t suffer, we have taken adequate precautions and a historic step to honour all the commitments," Mehta told Business Standard.

More For You

Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less
Northern-Superchargers-Getty

Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)

Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal

INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.

The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.

Keep ReadingShow less
BT-Getty

A view of the British Telecom (BT) headquarters in central London. (Photo: Getty Images)

BT to remove diversity targets from manager bonuses

BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.

The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.

Keep ReadingShow less
India's central bank cuts interest rates for first time since 2020

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.. (Photo credit: Reuters)

India's central bank cuts interest rates for first time since 2020

THE RESERVE BANK OF INDIA (RBI) reduced interest rates on Friday for the first time in nearly five years, citing concerns over economic growth despite inflation risks.

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.

Keep ReadingShow less
Sri Lanka seeks to negotiate with Adani over renewable energy plants

Gautam Adani

Sri Lanka seeks to negotiate with Adani over renewable energy plants

SRI LANKA’S government started talks with India’s Adani Group to lower the cost of power from two wind power projects the group will build in the island nation’s northern province, the cabinet spokesman said last Tuesday (28).

Sri Lanka has been reviewing the group’s local projects after US authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.

Keep ReadingShow less