Punjab National Bank Requests RBI to Provide for Losses Over 4 Quarters
Both Nirav Modi and Mehul Choksi has refused to appear before CBI to cooperate in the investigation
The Punjab National Bank (PNB) has requested the Reserve Bank of India (RBI) to allow it to provide for losses that occurred due to the Rs 12,900 crore Nirav Modi fraud over four quarters instead of at one go as it expects to recover 40% of the loaned funds. Bearing the full provisioning loss of over Rs 12,900 crore in the March-end balance sheet could wipe out more than a quarter of PNB’s net worth of Rs 48,000 crore, the Economic Times reported.
Reportedly, it is expected that RBI will agree to the request as there is a provision in its rule that losses can be spread over four quarters. Gitanjali Gems Ltd’s promoter Mehul Choksi, an accused in the Rs 12,900 crore PNB fraud case, has refused to appear before the Central Bureau of Investigation (CBI). Nirav Modi has also declined to join the CBI investigation. Both of them are in an undisclosed foreign location.
Reports further highlight that, the Enforcement Directorate believes that a major chunk of the funds used to raise funds fraudulently by Nirav Modi Group from PNB has been used for buying immovable properties abroad.
(The above story first appeared on LatestLY on Mar 09, 2018 01:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).