CBI chargesheet names ex-PNB chief Usha, calls Nirav 'wanted'

15 May, 2018, 22:29 | Author: Suzanne Horton
  • Scam-hit PNB posts biggest ever quarterly loss of Rs 13,417 crore in Q4

Among the top officials of the public sector bank named in the CBI chargesheet is Usha Ananthasubramanian who was the MD & CEO of PNB (2015 to 2017). PNB's earnings will be pressurised as it will have to make enough provisions to deal with the scam-related payouts to other banks.

On Monday, the finance ministry had asked the boards of Allahabad Bank and PNB to take action against Ananthasubramanian and two executive directors of PNB. According to the chargesheet, the reconciliation of SWIFT system and Core Banking System, which enables inter-connectivity between branches and real-time updation of transactions, was not done despite reminders by the RBI.

Shares in Allahabad Bank closed 3.4 percent lower on Monday, while those in PNB ended slightly higher on the day.

The two PNB executives and Ananthasubramanian did not respond to multiple calls and messages seeking comment, while Allahabad Bank was not reachable for comment.

CBI officials said the chargesheet names Nirav Modi and his brother Nishal in connection with the issuance of Letters of Undertaking totalling Rs 6,498.20 crore during 2011-17.

The CBI has also booked former IDBI CMD Kishor Kharat, at present MD and CEO of Indian Bank, in the loan fraud case. Reconciliation of CBS and SWIFT messages was not done despite repeated RBI circulars caution notices and questionnaires, it alleged.

Two other PNB executive directors (EDs), K V Brahmaiji Rao and Sanjiv Sharan, were expelled soon after the charge sheet was submitted, the bank said in a filing to the stock exchanges late last night.


"Bank lending, especially in PSU banks, will be hit".

PSU banks account for 70 per cent of loans in the country.

In January, credit to industry increased 1.1 per cent compared with a contraction of 5.1 per cent in January 2017.

Bankers feel scam probes should avoid witch-hunts and the focus should be on the money trail.

Collective companies of Modi and Choksi availed loans from worldwide branches of other banks based on letters of undertaking (LoU) issued by several PNB employees only.

The Reserve Bank of India had sent a questionnaire to the officials seeking to know the status of LoU issuing process in their bank which was responded to by Ahad in concurrence with his seniors including Ananthasubramanian in which he had stated that all was well in the bank, they said. She also refused to take a haircut on loans to the notorious Vijay Mallya's Kingfisher Airlines.

This would help establish how the money has been siphoned off and if so who were the beneficiaries.

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