"In PNB there is zero tolerance towards unethical practices within the system. That is why the minute the bank became aware about discrepancies related to the incident, the fraudulent transactions were immediately reported to the regulator and the law enforcement agencies," it said.
PNB said it has reached out to other affected banks and apprised them of the developments.
On February 14, PNB informed exchanges about a fraud to the tune of Rs 114 billion involving billionaire jewellery designer Nirav Modi, his family and uncle Mehul Choksi of Gitanjali Gems.
The fraud amount after further probe by the bank now stands at nearly Rs 130 billion.
The Modi-Choksi duo managed to generate fake LoUs in connivance with a few bank officials and presented the same to other Indian bank branches overseas to avail credit facilities outside India.
As many as 30 odd banks are affected due to this fraud including SBI, Union Bank, Allahabad Bank, ICICI Bank, among others.
As a fallout of the fraud, touted as the biggest in the Indian banking history, Reserve Bank asked lenders last month to discontinue issuance of Letters of Undertaking (LoUs) and Letters of Comfort (LoCs) for trade credits.
Further, PNB said it has undertaken measures to strengthen internal audit control mechanisms and looking at technology interventions to enhance customer service and customer responsiveness including automating customer response mechanism.
In response to query on what action has been taken by the bank against its employees involved in the fraud, PNB said the bank is committed to ensuring that no one, irrespective of their level, is spared.
Regarding a query on safety of customer's money, PNB said with a strong balance sheet of Rs 11 trillion and sufficient non-core assets, it is capable to meet any contingent liability on the bank and "your money is safe with us".
The bank registered the case with CBI in February itself. Besides, the Enforcement Directorate is probing the matter at its level.
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.