PNB Assures Investors, Says It Has Enough Assets To Meet Liability Arising From Nirav Modi LoanPunjab National Bank. (Dan Kitwood via Getty Images)

In a clarification to the stock exchanges about the Nirav Modi fraud, Punjab National Bank (PNB) said that it had enough capital and assets to meet the liabilities decided by the law, arising from the loan, Mint has reported.

PNB had reported a Rs 11,400 crore fraud committed by Nirav Modi and Mehul Choksi last week, to which Nirav Modi had replied that he intended to repay the loan but the bank’s action of going public had killed his business and his ability to repay the amount.

Responding to Nirav Modi’s letter to the bank, PNB claimed that it had followed lawful procedure to recover the dues. The bank has several real estate holdings that it can monetise and it is also in partnerships with mutual funds and insurance agencies which it can partially or fully exit to meet the liabilities.

The capital adequacy ratio stood at 11.58 per cent last December and it is also set for a Rs 5,473 crore capital infusion from the government at the quarter ending March.

PNB’s shares had seen a decline following the disclosure and the bank has sought to assuage investor and customer fears through its clarification. The share price was still down 2.77 per cent at Rs 114.05 at the time of writing.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement