PNB has been rocked by a $1.77 billion scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders. Photo: Bloomberg
PNB has been rocked by a $1.77 billion scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders. Photo: Bloomberg

PNB fraud: Indian Banks’ Association to meet today

The finance ministry, meanwhile, has asked all banks review their systems and processes and ensure that potential frauds are identified and corrective action taken if required

New Delhi: The bankers’ body Indian Banks’ Association (IBA) will meet on Saturday to deliberate on the Rs11,400 crore fraud involving billionaire diamond jeweller Nirav Modi and Punjab National Bank (PNB), people aware of the developments said.

IBA chairperson Usha Ananthasubramanian was earlier the managing director of PNB. She is currently heading Allahabad Bank, which is believed to have encashed some of the letters of undertaking (LoUs) issued by PNB.

The finance ministry, meanwhile, has asked all banks review their systems and processes and ensure that potential frauds are identified and corrective action taken if required.

PNB has been rocked by a $1.77 billion scam where billionaire jeweller Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.

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