Steps initiated by ICAI on Punjab National Bank Matter

Posted on    17 February 2018

The attention of Institute of Chartered Accountants of India (ICAI) has been drawn to various media reports highlighting the irregularity happened in Punjab National Bank (PNB) revealing that the Bank has detected a $1.77 billion (about Rs.11,400 crore) wrongdoing  where a Jeweller Nirav Modi allegedly acquired fraudulent Letters of Undertaking (LOU) from a branch of PNB in Mumbai to secure overseas credit from other Indian lenders. These reports further reveal that CBI has since registered a case against  Nirav Modi and others on the basis of the complaint filed by PNB.  It has also come out that Enforcement Directorate (ED) is also conducting various raids and investigations in the matter.

In this regard, ICAI in consonance with its role as regulator considering the mammothness and modalities of the irregularity that has been perpetrated on the  Public Sector Bank, has suo-moto triggered its disciplinary mechanism by writing to the Bank concerned and also all other investigating agencies i.e. SEBI, ED and CBI requesting them to provide requisite details of their investigations in PNB matter.

The ICAI has on its own also constituted a High Power Group in this matter to study the systemic issues in the PNB matter and suggest remedial measures and improvement in the banking  system to ensure preventive measures to avoid such type of incidents.

It needs to be emphasised that ICAI would be actively pursuing the issue with the concerned agencies and stakeholders so as to examine the matter in detail to suggest improvements.

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