by admin | May 25, 2021 | Finance, News
Dehradun : The Central Bureau of Investigation (CBI) has arrested a senior manager of the Punjab National Bank (PNB) here for allegedly taking a bribe of Rs 40,000 from a cement trader, CBI sources said on Sunday.
Rajkumar, posted at the Tagore Villa branch on Chakrata Road, was arrested on Saturday evening following a complaint by Kunal Sharma, who wanted a loan of Rs 5 lakh from the PNB, the sources said.
After the complaint, the CBI arrested the bank officials as he accepted the money from Sharma. The bank manager’s Arya Nagar residence in the city was later searched.
—IANS
by admin | May 25, 2021 | News
New Delhi : The Enforcement Directorate (ED) on Thursday said it has sent request for attachment of fugitive diamantaire Nirav Modi’s Hong Kong assets worth Rs 255 crore in the multi-crore Punjab National Bank (PNB) loan default case.
The financial probe agency sought attachment of the assets by Hong Kong authorities under the Prevention of Money Laundering Act by sending a provisional attachment order in the form of Letters Rogatory. The ED said it has till date attached properties worth Rs 4,744 crore in connection with the case in India and abroad.
Earlier in October, the ED had attached assets in India and sought seizure abroad of properties worth Rs 218 crore belonging to Nirav Modi and his maternal uncle Mehul Choksi. The two had fled the country before the scam broke.
They are accused of defrauding state-run PNB of Rs 13,500 crore.
Nirav Modi and Choksi of Gitanjali Group are under probe by both the Central Bureau of Investigation and the ED. The ED had on May 24 and May 26 filed charge sheets against the two.
Non-bailable warrants have also been issued against them.
The Interpol had issued a Red Corner Notice (RCN) against Nirav Modi, his brother Neeshal and sister Purvi — both Belgian citizens — as well as Mihir Bhansali and Aditya Nanvati, close associates of Modi.
However, an RCN request against Choksi, who acquired Antiguan citizenship earlier in 2018, is pending with the Interpol.
—IANS
by admin | May 25, 2021 | Banking, Corporate, Corporate Buzz, Corporate finance, Economy, Markets, News
New Delhi : State-run lender Punjab National Bank is expected to recover around Rs 1,800 crore from its non-performing assets (NPAs) recovery mechanism — “Mission Gandhigiri” — which will soon complete one year of operation.
A senior bank official told IANS the mission, was launched in May 2017, had consistently delivered positive results with an average recovery of Rs 150 crore from the initiative.
“The mission was born out of the need to name and shame defaulters to increase societal pressure and urge them to pay back. Mission Gandhigiri has a dedicated recovery team across all circles of the bank,” the official, who did not want to be named, told IANS.
Accordingly, the passive recovery mechanism entails the team members to “visit the borrowers’ office or residence and sit their silently with placards that have hard-hitting messages such as ‘It is public money, please repay the loans’.”
On the legal side of the operation, following the government’s directions regarding wilful defaulters, the bank has declared 1,084 wilful defaulters.
“Due to PNB’s aggressive stance towards wilful defaulters, 150 passports have been impounded over the past few months,” the official said. Additionally, over the last 9 months, the bank has also lodged 37 FIRs against defaulters.
The bank is also leveraging data analytics for loan recovery and risk management.
“We have tied up with a leading credit agency and with the help of a third-party expert analytics, we will now be able to get access to contact information of PNB defaulters who have good credit record with other lenders,” the official said.
“This partnership is a part of the larger strategy to deploy technology to strengthen internal systems. This partnership will not only help the bank with loan recovery but will also help identify and automate profitable lending strategies and minimise credit and fraud risk,” the official said.
The bank has also recently started works towards “improving internal systems by incorporating analytics and Artificial Intelligence for reconciliation of accounts”.
In addition, two special OTS (One-Time Settlement) schemes have helped the bank to accelerate NPA recovery.
“From an average of recovering loan amount from 70,000-80,000 NPA accounts in a year, this move has resulted in recovery in 225,000 NPA accounts over a span of 10 months,” the official added.
“These schemes apply to small NPA accounts helping defaulters come out of debt.”
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz
By Rohit Vaid,
New Delhi : To avert any future fraud, the 124-year-old state-run lender Punjab National Bank said that it has strengthened internal audit controls by having separate “pre-sanction appraisal and post sanction monitoring” teams for credit disbursal.
Besides, the lending major told IANS that it will look on a quarterly basis on whatever internal accruals can be generated — through recovery, more efficient risk management, more business generation and more cross selling.
“We have strengthened our process of underwriting of credit to wean out any possibility of fraudulent behavior and ensure a fair evaluation,” a senior official of the bank told IANS on the sidelines of PNB’s 124th Foundation Day held on April 12.
“The process has been divided into four components with different employees focused on — sourcing appraisal, processing and underwriting documentation and disbursement recovery.”
These new developments are part of the bank’s “Mission Parivartan” under which an independent think-tank has been set-up within the company to provide “both directional and policy inputs”.
Recently, the bank has faced a multi-billion fraud related to the Nirav Modi and Gitanjali Diamonds group.
According to the bank, its Board has also approved revamping of the process and given higher weightage to the off-site monitoring mechanism.
“The analysis from the off-site monitoring mechanism will reduce dependence on physical inspection and audit to identify risks and the detachment between the front office and off-line monitoring system will drive greater transparency in reporting,” the senior official said.
In addition, the state-run lender has decided to deploy Artificial Intelligence (AI) for reconciliation of accounts for technology interventions to counter the repeat of recent fraud.
On the problem of non-performing assets (NPAs), the bank has decided to form a separate “vertical to deal with its stressed assets”.
In terms of new products and services, the state-run bank on its foundation day informed about several new initiatives like “pre-approved credit card” which are issued on a customer request through SMS and PNB’s UPI partnership with the “Walnut App”.
“In the next 100 years, I believe that PNB has an opportunity to reach even more people especially those without financial access and continue to empower MSMEs and countless businesses to realise their true potential,” said Sunil Mehta, MD & CEO, Punjab National Bank.
(Rohit Vaid can be contacted at rohit.v@ians.in)
—IANS
by admin | May 25, 2021 | News, Politics
Diamond merchant Mehul Choksi
New Delhi : Diamond merchant Mehul Choksi, co-accused in the Rs 13,540 crore Punjab National Bank (PNB) fraud, has said that “exaggerated” allegations by multiple investigating agencies has left him “completely defenceless” and that he feared for his safety to return home.
In a two-page March 16-dated letter to the Central Bureau of Investigation (CBI), Choksi denied he was a partner of Diamond R US, Stellar Diamond and Solar Exports.
These firms have been accused of conducting fraudulent transactions with Firestar International and Firestar Diamond International owned his nephew Nirav Modi, who is also an accused in the PNB fraud.
The companies were named by the CBI in an additional FIR filed on February 14. Choksi was summoned to appear before the CBI on March 16 for questioning in the case.
Reiterating that it was “impossible” for him to return to India, Choksi said his health condition was not conducive and that his passport remained suspended.
“Till date, the Regional Passport Office (in Mumbai) hasn’t communicated with me and my passport remains suspended. I have the deepest respect for your offices and assure you that I am not making any excuse, whatsoever, to travel to India.
“I reiterate that I am abroad and have earlier also responded to your notices. Surprisingly, the issues raised remain unaddressed, making my fear of safety rise to extreme levels.”
He questioned the CBI move to name him in another case related to the bank fraud “knowing fully well that I have no concern whatsoever” with Diamond R US, Stellar Diamond, Solar Exports.
“I am neither a partner (of these firms) nor do I have any kind of association with the three concerns.”
He said various actions by multiple agencies taken against him and “the manner in which the allegations have been exaggerated has left me completely defenceless”.
“In any case”, he said, “I am extremely held up in my business abroad and am working hard to resolves the issues it is facing due to the unnecessary closure of business in India due to untenable allegation.” Choksi had left the country along with his nephew and other family members in January this year.
He said doctors had advised him “not travel for a period of four to six months”.
“I am unable to travel to India due to my persisting health condition. In February 2018, a cardiac procedure was conducted and medical follow ups still remain and as the entire procedure could not be completed. The situation still remains,” he said.
—IANS
