chapetmarunga Posted February 16, 2018 Share 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. Link to comment Share on other sites More sharing options...
chapetmarunga Posted February 16, 2018 Author Share Posted February 16, 2018 Now tax payers have to foot the bill to bail out the bank while he enjoys life overseas. Link to comment Share on other sites More sharing options...
velu Posted February 16, 2018 Share Posted February 16, 2018 relax.. same tax payers cheat the governemnt/income tax as well .. it evens out Link to comment Share on other sites More sharing options...
mishra Posted February 16, 2018 Share Posted February 16, 2018 Nimos empire is probably bigger than a billion. Actuall issue here is how lax our national banks are Link to comment Share on other sites More sharing options...
Singh bling Posted February 16, 2018 Share Posted February 16, 2018 Lets blame UPA for this Link to comment Share on other sites More sharing options...
coffee_rules Posted February 16, 2018 Share Posted February 16, 2018 Chota Modi trending in India! Link to comment Share on other sites More sharing options...
FischerTal Posted February 17, 2018 Share Posted February 17, 2018 gujjubhai rocks!! velu 1 Link to comment Share on other sites More sharing options...
diga Posted February 17, 2018 Share 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 velu and Turning_track 2 Link to comment Share on other sites More sharing options...
surajmal Posted February 18, 2018 Share 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 Link to comment Share on other sites More sharing options...
Mariyam Posted February 19, 2018 Share 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 Link to comment Share on other sites More sharing options...
WC2011INDIA Posted February 19, 2018 Share 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. Link to comment Share on other sites More sharing options...
WC2011INDIA Posted February 19, 2018 Share 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 Link to comment Share on other sites More sharing options...
Turning_track Posted February 19, 2018 Share 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!!! Link to comment Share on other sites More sharing options...
WC2011INDIA Posted February 19, 2018 Share 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 Link to comment Share on other sites More sharing options...
chapetmarunga Posted February 20, 2018 Author Share 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 Link to comment Share on other sites More sharing options...
beetle Posted February 20, 2018 Share Posted February 20, 2018 http://www.ddbharti.in/news/aap-congress-rahul-gandhi-kapil-sibal-pnb-scam.html Link to comment Share on other sites More sharing options...
FischerTal Posted February 20, 2018 Share Posted February 20, 2018 vipul ambani arrested by CBI Link to comment Share on other sites More sharing options...
Singh bling Posted February 27, 2018 Share 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 Link to comment Share on other sites More sharing options...
vvvslaxman Posted February 27, 2018 Share 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. Link to comment Share on other sites More sharing options...
Sachinism Posted February 27, 2018 Share 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. Link to comment Share on other sites More sharing options...
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