Have enough cash to meet liability says scam-hit PNB

Mumbai, Feb 22 The $1.8 billion fraud-hit Punjab National Bank (PNB) on Thursday reiterated that it had enough assets/capital to meet any liability which is decided as per law. The bank said this in response to a clarification sought by the stock exchanges about what would be "the impact of the event on the financials and operations of the bank". Further when asked why the bank had not reported the filing of the FIR with Central Bureau of Investigation (CBI) at the occurrence of the event, the bank said: "Since law enforcing agencies were assigned to investigate the matter, any news in public would have alerted the fraudster affecting recovery." When the exchanges asked the bank about Nirav Modi's comment that PNB has closed all option to recover dues by going public, the bank clarified: "We have followed lawful avenues available to us as per law of land to recover our dues." The exchanges sought further clarification, asking "it has been observed that the quantum of the amount of fraud was initially reported by the bank as Rs 280 crore and in a subsequent disclosure the amount was reported as approximately Rs 11000 crore." The bank said: "On February 5, 2018, we on the basis of preliminary investigation report, informed simultaneously to our Board as well as to BSE and NSE of initial fraud case of Rs 280.70 crore.  "Upon receiving further investigation report enhancing the fraud amount to Rs 11,394.02 crore ($1.77 billion) FMR with RBI, FIR with CBI were filed in evening of February 13, 2018 and information with BSE & NSE on February 14, 2018 around 9.00 am," the bank added.