Rating agency Crisil has put the scam-ridden Punjab National Bank’s ratings on ‘watch’, following the Rs 11,400-crore fraud detected by the lender at one of its Mumbai branches.
The fraudulent transactions were carried out by diamond jeweller Nirav Modi and his companies by acquiring fraudulent letters of undertaking (loUs) from the lender’s Brady House branch at Horniman Circle branch in south Mumbai to secure overseas credit from other lenders. These are mostly domestic lenders such as SBI, Uco Bank, Allahabad Bank, Union Bank, Axis Bank among others.