PNB seeks breathing space, terms Nirav Modi’s repayment plan as ‘vague’

NEW DELHI: PNB management on Thursday clarified that it has kept all lenders aware of the developments related to the $1.77 billion fraud case.

“We are committed to clean banking,” said Sunil Mehta, MD and CEO of India’s second largest PSU bank.

Mehta asserted that the issue is a standalone case and does not involve other bank branches.


Mehta said Nirav Modi has not come up with a concrete plan so far. “Plans submitted by him were vague, which are under examination,” he added.

The bank asked related parties to give it "breathing time" to bring culprits to book, adding that it has approached law enforcement agencies for the same.

The bank management said it was them who had disclosed the case first to Sebi.

PNB said that it has not only booked the company involved but also its employees including deputy manager Gokulnath Shetty and other staff. Besides, it took action against staff members for supervisory lapses and suspended a couple of them, the management revealed.

"We will not spare anybody, be it a junior or a senior," Mehta told media on its position on the employees involved in the fraud.

"PNB has seen many ups and downs in its 123 years and has come out with flying colours. That is why it is the second largest lender,” he said.

The bank will honour 'all bona fide' commitments, Mehta said, adding that his bank does not want to reduce civil and criminal liabilities of the culprits. We will comply with regulator's opinion in the case, the management said.