Public sector banks want PNB to honour its commitment with regard to loUs allegedly issued by it to Nirav Modi and its associates, said State Bank of India (SBI) Deputy MD MS Sastry.
He also said exact liability will be known after the completion of investigation.
“They were all issued by PNB and against that we have made payment,” he told reporters here.
When asked if he expects PNB to honour all loUs, he said, "Yes".
Meanwhile, PNB Executive Director Sanjiv Sharan said, “the matter is being investigated and it is under the process. So, it can not be inferred right now. We are on the job”.
Billionaire jeweller designer Nirav Modi and his uncle Mehul Choksi in connivance with certain bank officials allegedly cheated the PNB of Rs 12,968 crore through fraudulent letters of Undertaking (loUs).
The Mumbai branch of Punjab National Bank had issued as many as 1,213 letters of undertaking (loUs) fraudulently for the group of companies belonging to Nirav Modi since March 2011.