PNB tanks 7% as CEO meets CVC officials

NEW DELHI: PNB slipped further into the quicksand on Monday with a loss of over 7 per cent as CEO Sunil Mehta arrived for a meeting with Central Vigilance Commissioner (CVC) officials in connection with the Rs 11,400-crore fraud.

The scrip was closed the dat 7.36 per cent lower at Rs 116.40 on BSE.

PNB has been asked to provide a report on lapses on the SWIFT records, financial transactions with foreign branches of banks, and how LoUs issued in Nirav Modi-related cases escaped the bank's central database, TOI reported.


According to an ET report, the lenders concerned will contest the stand of PNB before the regulator that they had flouted credit norms. They are likely to cite the longer, 180-day stipulation on buyers' loans for importing pearls for which PNB had supposedly issued payment guarantees, the report suggested.

Gokulnath Shetty, a former deputy manager of Punjab National Bank, is reported to have had access to the password only higher level officials in the bank knew of. Media reports quoting CBI sources said a total of 143 LoUs were cleared in just 63 days.