How is it possible that internal auditors of bank, concurrent auditors , statutory auditors and RBI auditors could not detect onhoing fraud?
How did they certify financial statements of the frdud ridden branch for 7 years?
Hundreds of audit might have taken place in branch as well as for bsnk. It gives the indications about nature of auditing.
How CVO and CVC remain silent spectator u him an exposure comes?
Are they meant for post mortem only?
I ask CMD of PNB who is heading press conference now. Yesterday it was reported that 10 officers have been suspended and today he says only two officers are booked. They have made two juniors scapegoat and none of top officers have been questioned or held responsible .
How is it possible that junior officers posted in a branch can pay thousands of crores of rupees and that too without entering into finacle i.e. CBS system?
Why was contingent liabilities not reflected in books and not provided adequately? Anf if contingent liabilities are in books of account that how senior officers can claim that there are unaware of fraud?
What are collateral securities and whether security documents are properly executed and are not time barred?
When fraud was detected in third week of January this year, how could accused borrowers Sri Nirav Modi and others could fly out of India ?
Why bank could not ensure cancellation of passport of all promoters of fraudulent companies as soon as it came to light?
They could have prayed to CBI for advising all airports and for putting ban on promoters leaving India?
They did not learn lesson from Malya episode.
How it is possible that PNB management continue to honour payment under a fake LOU for 7 years without completing due diligence every year?
There is a banking practice and it is mandatory as per RBI guidelines that all credit facilities, fund based or non_ fund based must be inspected and renewed periodically.
What you media men are doing?
Why did you not raise the valid questions?
Why do you not ask the then CMD and ED of bank and ask questions to Finance Ministers of UPA government and RBI officials?
How is it possible that money amounting to hundreds and thousands of crores of rupees are remitted outside India are not checked by RBI?
Why Finance secretaries of past are not asked questioned? And so on.
I may say that MD of PNB has not said anything new in PC. And he has simply made mockery of news of such a high vslue fraud.
Bank officers who are directly or indirectly associated with entire transactions duting last seven years must be questioned and top officials like CMD , ED and General Managers of last 7 years , retired or working should be hrld accountable and punishable.
Even a loan account of Rs11000 is renewed every year . How is it possible that PNB did not carry out due diligence while renewing non_fund credit of Rs11400 crores?
How PNB BANK failed to detect the irregularities at the time of renewal?
FOLLOWING is step taken by government.
Rs 110-bn PNB fraud: Govt asks banks to submit status report by weekend.
Press Trust of India | 14/02/2018
Concerned over fraud of over Rs 113 billion (Rs 11,300 crore) at Punjab National Bank (PNB), the finance ministry has asked all banks to send reports involving this case or other such incidents latest by the end of this week.
Earlier in the day, PNB disclosed some fraudulent transactions with financial implication of $1.77 billion (about Rs 11,334.4 crore).
The bank has detected some fraudulent transactions in one of its branches in Mumbai for the benefit of a few select account holders with their apparent connivance, PNB said in a statement.
Based on these transactions, other banks appear to have advanced money to these customers abroad, it said.
Since more than one lender is involved, all banks have been asked by the Department of Financial Services to submit a status report soon on the fraud, official sources said.
They said the Letter of Undertaking was issued fraudulently by PNB to billionaire diamond merchant Nirav Modi and associates and was encashed overseas by them from different banks, both private and public sector.
All this was being carried out in connivance with officials as high as Deputy General Manager since 2011, sources added.
As a corrective measure, PNB has suspended 10 employees in connection with the fraud.
The finance ministry has asked, through the reform agenda circulated to the banks on January 24, that dubious accounts should be scrutinised and appropriate action against fraudsters be taken with zero tolerance, sources said.
Banks should not dither from taking action against their own employees in case of collusion if there is sufficient ground, they added.
Meanwhile, the bank has also lodged complaint with the CBI against billionaire jewellery designer Nirav Modi and a jewellery company about fraudulent transactions worth Rs 100 billion (Rs 10,000 crore).
The agency received the complaints about the transactions detected by the public sector bank late last night, the sources said.
The allegations are being looked into and future course of action will be decided soon, they said.
Agency sources said Modi is already facing a CBI probe on a complaint from the Punjab National Bank.
This is the second incident in less than 10 days where a bank has been defrauded by the same person.
PNB fraud: UPA govt could've avoided Nirav Modi scam in 2013, says ex-Allahabad Bank director who blew whistle against loan.
Today on 19th Fab 2018 one excellent article written by renowned banker Sri Tamil Bandopadhyay is published which enlighten us what could have happen and what did not happen in PNB which resulted in fraud of more than Rs11000 crore.
Link to livemint
I am submitting it here For the benefit of all concerned and it may help in reaching real culprit.