INSUBCONTINENT EXCLUSIVE:
PNB will have to captivate the jolts of these losses.
and his Gitanjali Group firms
Other top officials of the bank are also under the scanner
However, the worst news for the bank came from the stock markets with its shares falling massively throughout the day
PNB shares tanked around 12 per cent today; a day after the state-run bank reported a net loss of Rs 13,417 crore in January-March quarter
state-run bank booked provisions to cover a Rs 13,400 crore fraud that surfaced in January this year
recovering any amount in this case
May be the bank is in the position to recover only a marginal amount from Mr Nirav Modi
The government will have to invest substantial amount of capital in this government bank", research analyst Hemindra Hazari said in a
conversation with TheIndianSubcontinent
first the massive fraud and then an erosion of capital
While diamond merchants Nirav Modi and Mehul Choksi have been escaping arrest, former MD and CEO of PNB Usha Ananthasubramanian has been
named in two chargesheets along with top officials KV Brahmaji Rao and Sanjiv Sharan and Nehal Ahad
Not only this, the PNB board also divested its Rao and Sharan, of all executive and financial duties and powersThe government recently
confirmed that it has started action for removal of Usha Ananthasubramanian (who is now the CEO of Allahabad)
She was the managing director of PNB until May 5 last year
The lender said it provided for Rs 7,178 crore, 50 per cent of the total amount of Rs 14,356 crore in the fourth quarter of 2017-18
Now, PNB has been allowed to spread the fraud-related provisions over four quarters by the central bank
The bank would make the remaining Rs 7,178 crore of provisions due to the fraud in the three quarters that began on April 1."The capital of
PNB is going to get eroded
Credit has to grow in the country and if the second largest government bank cannot grow, it will have larger ramifications for the Indian
economy," Hemindra Hazari further told TheIndianSubcontinent.
