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Punjab National Bank, hit by biggest Indian banking scam last year, posts quarterly profit

File photo. Photograph:( Reuters )

WION Web Team New Delhi, Delhi, India Feb 05, 2019, 03.57 PM (IST)

Punjab National Bank (PNB) chairman Sunil Mehta said Tuesday that the state-run bank, which has been hit by India's biggest banking scam in 2018, had posted a quarterly profit helped by a sharp drop in provisions. PNB had been scammed of over Rs 13,000 crore by the jewellers Nirav Modi and his uncle Mehul Choksi. 

"Our recovery for the first three quarters is Rs.16,000 crore, which is almost three times the recovery last year. This, in turn, has helped us in reducing our Gross NPA percentages from 18.32% to 16.33% right now," Mehta said Tuesday. 

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Reacting to the matter of the recovery of fugitive liquor baron Vijay Mallya's assets. Mehta stated that the "recovery will be done as per legal procedures. The judicial process is still underway."

On Nirav Modi, Mehta noted that 100 per cent provisioning in the matter has been done. "It was completed till the third quarter," he added. 

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Fugitive liquor baron Vijay Mallya's extradition to India has been ordered by the United Kingdom. UK Home Secretary Sajid Javid Monday ordered Mallya's extradition to India on Monday. 

Accused of conspiracy to defraud banks and money laundering offence, the 63-year-old business tycoon is wanted in India for charges amounting to an estimated Rs 9,000 crores.

Mallya is also accused of violating the Foreign Exchange Management Act (FEMA).  

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"Vijay Mallya is accused in India of conspiracy to defraud, making false representations and money laundering offences,” the order said. "

Mallya has decided to initiate the appeal process after the UK Home Office approved his extradition to India on Monday.

(With inputs from agencies

Story highlights

PNB had been scammed of over Rs 13,000 crore by the jewellers Nirav Modi and his uncle Mehul Choksi.