The share prices of Punjab National Bank (PNB) dropped by around 10 per cent in Wednesday's early morning trade. The chargesheet also focuses on the Letters of Undertaking and Foreign Letters of Credit of close to Rs 600 crore of the total loss of over Rs 7,000 crore to Punjab National Bank by Choksi, reported The Indian Express. The remaining amount will be covered in three quarters of 2017-18.
The charge sheet pertains to a second FIR related to alleged crimes of Choksi and his companies in the series of three such cases registered by the Central Bureau of Investigation in the over $2 billion scam case in which the jeweller's nephew Nirav Modi is a prime accused, they said. "Shetty compelled Dutta to part with Rs 1.02 crore as illegal gratification by way of cheques favouring himself and his family members by threatening Dutta of stopping his business", the chargesheet said. Besides this, the probe agency also named Sanji Saran, Brahmaji Rao and Nehal Ahad.
In absolute term, the gross NPA of the bank surged to Rs 86,620 crore in the fourth quarter as compared to Rs 55,370 crore in same quarter a year ago.
On the BSE, the stock crashed 12.15 per cent to end at Rs 75.55. As of March 2018, PNB holds 32.96% stake in PNB Housing. Even on operating profit basis, the bank had loss of Rs 447.38 crore in the quarter as against Rs 6,231.79 crore profit in the year-ago period.
Others named in the chargesheet include arrested PNB employees Manoj Kharat, single-window bank operator (clerk), MK Sharma, internal chief auditor, Bechu Tiwari, chief manager in-charge of forex department, Yashwant Joshi, Scale II manager of the forex department and Prafful Sawant, Scale-I officer handling the exports section.
During the quarter, the government made capital infusion of Rs 5,473 crore by way of preferential allotment of equity. "After including outstanding amounts under other credit facilities to the above entities, the amount involved now works out to Rs 14,356.84 crore", the bank said in its notes to accounts.
Incidentally, BDO India LLP, the firm engaged by PNB to conduct a forensic investigation into the fraud committed by Modi and his companies, has also shared its findings with the United States bankruptcy court.
"The ramifications of the big fraud on the bank, both direct and indirect, has been far higher than initially anticipated".