PNB Fraud: Allahabad Bank Divests CEO Usha Ananthasubramanian Of All Powers

PNB Fraud: Allahabad Bank Divests CEO Usha Ananthasubramanian Of All Powers

The CBI in that charge sheet said Usha Ananthasubramaniam did not act to uncover the fraud in spite of warnings from the Reserve Bank of India.

The bank's share price on the BSE today settled at Rs 75.55, down Rs 10.45 or 12.15 per cent, from the previous close of Rs 86 per share.

The state-owned bank had reported standalone profit of Rs 261.90 crore in the fourth quarter of the preceding fiscal 2016-17.

The chargesheet was filed in a special CBI court in Mumbai, an official said.

The Delhi-based lender's earnings will be under pressure as it will have to make provisions for the scam-related payouts to other banks.

The CBI on Wednesday filed its supplementary chargesheet against billionaire Mehul Choksi and his companies under Gitanjali Group regarding the Punjab National Bank scam involving over Dollars 2 billion.

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CPW told CBS4 Sunday afternoon they have set up three traps in the neighborhood which will be left overnight. He said Kimberly will be "fine" after the attack happened at their D Road home around 2:30 a.m.

The names included Nirav Modi, his brother Nishal Modi, three companies - Diamond R US, Solar Exports, Stellar Diamond and seven employees of these companies Hemant Bhat, Vipul Ambani, Arjun Patil, Kavita Mankikar, Miten Pandya, Manish Bosamiya, and Subhash Parab. "After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore", the bank said in its notes to accounts. Officers said then deputy manager of PNB, Brady House branch, Gokulnath Shetty had allegedly obtained illegal gratification from Choksi's company, in exchange for issuing fraudulent Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs).

Of this, the bank made payments of Rs6,500 crore to seven banks honouring these LoUs in the March quarter, that is expected to reflect in the quarterly results.

Earlier this month, the daily had reported that the Bankruptcy Court for the Southern District of NY had asked a global professional services firm, Alvarez and Marsal, to investigate the circumstances surrounding the alleged Rs 13,000 crore bank fraud involving the diamantaire-turned-fugitive.

The PSU lender said it made provisions and contingencies worth Rs 20353.10 crore for the quarter ended March.

As per the quarterly number, the RBI detected Gross NPA divergence of Rs 2,207 crore during the FY17.

"PNB may also be restricted to conduct normal business".

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