Axis Bank sells down transactions against LoUs issued by PNB
Mumbai: Axis Bank informed the stock exchanges on Thursday that the bank has sold down all the transactions which it had undertaken against the Letter of Undertakings (LoUs) issued by Punjab National Bank. These transactions were, however, undertaken against authenticated SWIFT LoUs, the bank assured.
“Axis Bank is an active participant in the secondary market for such transactions, and the bank has sold down all of the referred transactions,” said the notice.
The private sector lender added that such transactions are undertaken as part of the normal course of trade business through its overseas branches. The amounts are typically credited to the LoU issuing bank’s nostro accounts.
The clarification from Axis Bank comes a day after the PNB acknowledged that it has detected financial fraud amounting to over Rs11,000 crore in its Mumbai branch. The bank had accused jeweller Nirav Modi and the companies linked to him for acquiring LoUs to obtain loans from banks abroad.
- India congratulates China on its election as vice-president of FATF
- MWC 2018: Samsung Galaxy S9 is not fixing what already works well, but packs better cameras
- MWC 2018: Nokia looks at the past and the future, and tries to perfect both
- Worker rights in India:when actions fail words
- Do companies walk the talk on investing in communities?