Much of the public sector banks are sitting on huge NPA and there are no PCA. Soon things may break and Public sector banks would be broke. It also seems that the common man would loose faith on the banks. While the government is ready to bail out the public sector banks with public money, it would become difficult for them to bail out all the banks soon.
for looking the other way while diamond thief Nirav Modi and his family defrauded the Punjab National Bank, the CBI has said that a majority of the Letters of Understanding (LoUs) in the Rs 11,400-crore scam were either issued or were renewed in the bank in 2017-18 !
The CBI on Feb 15 registered a fresh FIR in the case against Mehul Choksi, maternal uncle of Nirav Modi, and his three companies claiming that they swindled PNB to the tune of Rs 4,886.72 crore in 2017-18 by way of getting 143 LoUs issued through the bank.
Notably, the first FIR in the case dealing with swindling of Rs 280.7 crores through eight LoUs registered by the agency on January 31 also mentions that the LoUs were issued in 2017. To this FIR, the CBI has now added new information provided by PNB on Wednesday and estimated the total loss in the first FIR at Rs 6,498 crore.
The cumulative figure for the total loss to PNB thus stands close to Rs 11,400 crore.
CBI sources stated in a presser that since the accused — Modi and his relatives — were rolling over the LoU money by way of getting them renewed, many old LoUs too have been renewed in 2017. The CBI on Friday questioned four PNB officials in connection with the case. Notably, they are all being probed for their dealings with Modi and his companies between 2014 and 2017 !
These included Bechu B Tiwari, chief manager of the Bank’s Nariman Point Branch in Mumbai between February 2015 and October 2017; Sanjay Kumar Prasad, current DGM
Re: As the BJP and the Congress blame each other
by piri on Feb 18, 2018 04:53 PM
of the bank and then AGM of Brady House Branch between May 2016 and May 2017; Mohinder K Sharma, then concurrent auditor between November 2015 and July 2017 and Manoj Kharat, then Single Window Operator holding office between November 2014 and December 2017.
The FIR registered on Thursday against Choksi says: “Accused Bank officials Gokulnath Shetty and Manoj Kharat in connivance with accused companies and directors during 2017-18 defrauded PNB to the tune of Rs 4886.72 crore in issuance of fraudulent and unauthorised LoUs in favour of foreign branches of different India-based banks and purported LCs (Letters of Credit) in favour of foreign suppliers of the accused companies.”
In short, the pointers are very clear - that the Central govt led by Narendra Modi is blatantly lying when it says that the PNB scam was caused by or developed under the previous govt !
"As per CBI sources, arrested bank officials, during interrogation, disclosed that for every LoU, a commission was fixed depending on the amount to be sanctioned as loan. Commission in exchange of issuing the aforementioned document was distributed between all employees of PNB involved in it, the CBI said."This is as reported today in this site.The write had talked about Lending culture.The existence of commission culture has been let out by bank Employees during the interrogation.The author should tell the role played by commission culture in lending culture in bank.If such commission culture is not in banks he can tell that R,POnnambalam
"As per CBI sources, arrested bank officials, during interrogation, disclosed that for every LoU, a commission was fixed depending on the amount to be sanctioned as loan. Commission in exchange of issuing the aforementioned document was distributed between all employees of PNB involved in it, the CBI said."For the first time the report COMMISSION playing a role is Loan disbursal has come out by interrogation.Will the bankdom open out commission culture vis a vis it's culture of lending once again."R.Ponnambalam
Re: More scams will be unearthed
by b g on Feb 18, 2018 08:39 PM
Congress never brought such reforms in 60 years but the ruling government don't have answers to the scams, Demo or the Rafal deal. Their term is going to end soon but they are still hiding behind the previous government. Good way to escape but people can see beyond them.
banks should never be questioned.but you crooks can harass the public,siphon off the funds,cheat the people and govts and do all malpractices?wahbhaiwah
