PNB issued a formal appointment letter to the Belgium-headquartered audit firm on Tuesday, sources said.
"It shall be our endeavour to exercise every bit of diligence in executing this assignment, given its sheer scale and complexity. It will be our responsibility to deliver the same within the required time frame in the larger national
interest and that of banking industry in particular," BDO India Partner and Head - Risk and Advisory Services Kartik Radia said in a statement today.
On February 14, PNB had disclosed the fraud wherein billionaire jeweller Modi and associates allegedly acquired fraudulent letters of undertaking (LoUs) from its Brady House branch in Fort area for overseas credit from other lenders.
Earlier this week, PNB had said the amount of unauthorised transactions could go up by more than Rs 13 billion from an earlier estimate of Rs 114 billion.
The state-run PNB has the highest exposure to Gitanjali Gems also at under Rs 10 billion, but ICICI Bank, the second largest with an exposure of over Rs 6 billion is the lead bank in the consortium.
In a statement, the largest private lender had said it has an exposure to Gitanjali, but not to firms promoted by Nirav Modi, who is the alleged kingpin of the nearly Rs 13-billion fraud perpetrated at one of the branches of PNB in the financial capital.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.