PNB scam: Have no exposure to Nirav Modi group of companies, says ICICI

Representative image Photograph:( Zee News Network )

WION Web Team PNB scam, ICICI, Nirav Modi Feb 27, 2018, 05.59 PM (IST)

The Central Bureau of Investigation (CBI) on Tuesday called in for questioning Punjab National Bank (PNB) Executive Director NS Kannan in the biggest fraud in India’s banking history that has come to light.

Hours after Kannan's grilling session, ICICI issued a clarification saying the bank has no exposure to the Nirav Modi group of companies.

"We have not issued any Letter of Undertaking (LOU) nor do we have any buyer’s credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies," the statement said.

The bank said it is working capital lenders to the Gitanjali group of companies along with several other banks in the consortium, adding their exposure is not the largest among lenders in the consortium.

They assured complete cooperation to the investigating agency. 

Earlier CBI revealed that the PNB has informed the CBI that it has unearthed a further scam of Rs 1,251 crore which has been associated with the gems and jewellery company Gitanjali Gems, promoted by another key accused Mehul Choksi.

With the new revelations surfacing, the CBI has revised its estimate for total money that was siphoned off in the fraud.

 It is now probing a Rs 12,636 crore scam which is the collective fraud committed by Nirav Modi and Gitanjali Gems brands, up from an earlier fraud of Rs 11,421 crore.