chapetmarunga Posted February 16, 2018 Posted February 16, 2018 https://timesofindia.indiatimes.com/business/india-business/how-pnb-missed-warning-signs-to-avert-rs-11000-crore-fraud/articleshow/62938977.cms Last summer, just before retiring from Punjab National Bank (PNB), Gokulnath K Shetty issued a 365-day letter of undertaking (LoU) or a guarantee that allowed Nirav Modi’s companies to access funds from other banks. The former deputy manager is at the centre of the Rs 11,300-crore fraud+ . Typically, an LoU for a diamond trader is issued for 90 days.But, Shetty probably wanted to cover his tracks and ensure that the fraud, that had allegedly been going on since 2011+ , did not come to light until a year of his superannuation. However, the lid was blown off in the second half of January, when executives from Modi’s outfit approached the Brady House branch in Mumbai to seek a renewal of the facility. The PNB executive, who replaced Shetty, asked the company to cough up a hefty cash margin, prompting Modi’s people to disclose that they had never paid the bank in the past. The disclosure triggered an internal probe by PNB’s executives in Mumbai, resulting in the unearthing of what may be India’s largest ever banking fraud. PNB executives acknowledge that there were systemic lapses, and the bank should have noticed them earlier. To begin with, Shetty was allowed to continue at the same branch and handle the same assignment for years.
chapetmarunga Posted February 16, 2018 Author Posted February 16, 2018 Now tax payers have to foot the bill to bail out the bank while he enjoys life overseas.
velu Posted February 16, 2018 Posted February 16, 2018 relax.. same tax payers cheat the governemnt/income tax as well .. it evens out
mishra Posted February 16, 2018 Posted February 16, 2018 Nimos empire is probably bigger than a billion. Actuall issue here is how lax our national banks are
diga Posted February 17, 2018 Posted February 17, 2018 (edited) Quote Food for thought.. Ravi Subramanian 's book that released last year had a banking fraud story ...Where the main fraudster was a powerful jewellery trader by the name - Nirav Choksi! The 2 main jewellers in the current PNB fraud story r Nirav Modi n Mehul Choksi!!! Author Ravi is a banker over 2 decades and is from IIMB - quite a coincidence Edited February 17, 2018 by diga Turning_track and velu 2
surajmal Posted February 18, 2018 Posted February 18, 2018 Time to privatize the banks. Going after the corrupt congis will keep on happening. But as soon as NPAs are even remotely sorted, Namo better GTFO from public sector banks. velu 1
Mariyam Posted February 19, 2018 Posted February 19, 2018 On 2/18/2018 at 6:56 AM, BeardedAladdin said: Time to privatize everything. Not just the banks. I don't think that guarantees anything. There are many private banks whose entire subdivisions are non performing. Also, think back to the Satyam scam. An IT major fudged its books to boost stock value by conniving with PWC. Both established private players. BeardedAladdin 1
WC2011INDIA Posted February 19, 2018 Posted February 19, 2018 On 17/02/2018 at 4:42 PM, diga said: Author Ravi is a banker over 2 decades and is from IIMB - quite a coincidence Not a coincidence. Ravi Subramanian is the original Indian James bond since Indira's time.
WC2011INDIA Posted February 19, 2018 Posted February 19, 2018 On 18/02/2018 at 6:29 AM, surajmal said: Time to privatize the banks. Going after the corrupt congis will keep on happening. But as soon as NPAs are even remotely sorted, Namo better GTFO from public sector banks. Iske liye BHI Congress ko blame karogey. Thoda sharam karo. Majority of this bank scam took place under present government's nose. Both the parties are gunda, mawali, casteist and corrupt. Singh bling 1
Turning_track Posted February 19, 2018 Posted February 19, 2018 This Nirav Modi went on to open his two new stores on 5th & 9th Feb in Kuala Lumpur & Macau even after CBI registered 1st case against him. Experts have already predicted that Indian banks may take a hit of more than $ 3 billion due from loans and corporate guarantees provided to diamond companies by PNB scam. Indian banking is going through a real turbulent period now. SBI reported a Q3 loss of about 2416 crores & the analysts were expecting a profit of more than 2000 crores. Also what the auditor firms were doing all this time? Sleeping!!!
WC2011INDIA Posted February 19, 2018 Posted February 19, 2018 (edited) 7 hours ago, Turning_track said: This Nirav Modi went on to open his two new stores on 5th & 9th Feb in Kuala Lumpur & Macau even after CBI registered 1st case against him. Experts have already predicted that Indian banks may take a hit of more than $ 3 billion due from loans and corporate guarantees provided to diamond companies by PNB scam. Indian banking is going through a real turbulent period now. SBI reported a Q3 loss of about 2416 crores & the analysts were expecting a profit of more than 2000 crores. Also what the auditor firms were doing all this time? Sleeping!!! Auditors are kept in good humour by constant dose of chai, biscuits and samosas. Those and lots of under the table dealing/buttering to get "excellent rating" for the branch. Edited February 19, 2018 by WC2011INDIA Turning_track 1
chapetmarunga Posted February 20, 2018 Author Posted February 20, 2018 (edited) http://indianexpress.com/article/india/fitch-places-pnb-on-rating-watch-negative-reflecting-possibility-of-downgrade-following-rs-11400-crore-fraud-5070867/ Fitch places PNB on ‘Rating Watch Negative’ after Rs 11,400 crore fraud, downgrade possible Edited February 20, 2018 by chapetmarunga
beetle Posted February 20, 2018 Posted February 20, 2018 http://www.ddbharti.in/news/aap-congress-rahul-gandhi-kapil-sibal-pnb-scam.html
Singh bling Posted February 27, 2018 Posted February 27, 2018 PNB reveals additional fraud of Rs 1,300 crore https://timesofindia.indiatimes.com/business/pnb-reveals-additional-fraud-of-rs-1300-crore/articleshow/63087847.cms
vvvslaxman Posted February 27, 2018 Posted February 27, 2018 You gotta blame both the governments for a big oversight of this. But there are some elements in PNB at the top let this happen knowingly.
Sachinism Posted February 27, 2018 Posted February 27, 2018 Blame the banks. Pure and simple. Time after time, same old story. They knowingly allow this **** to happen as it benefits them in the short term. When they get caught out or have their pants pulled down the sympathy card and begging bowl come out.
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