Private lender Axis Bank Ltd. today said it has an exposure of Rs 200 crore to billionaire Nirav Modi and Gitanjali Gems accounts.
The Serious Fraud Investigation Office had sought details on these two accounts after the over Rs 12,700-crore Punjab National Bank fraud case, Axis Bank said in an exchange notification today. The bank is not the leader to the consortium in either case.
Last month, UCO Bank disclosed that it has the highest exposure of about Rs 2,635 crore on allegedly fraudulent guarantees that billionaire jeweller Nirav Modi and related firms had obtained. It's followed by Allahabad Bank's exposure of Rs 2,400 crore and Union Bank of India at Rs 1,920 crore. Country's largest lender, State Bank of India, also said it has an exposure of about Rs 1,360 crore but does not have any direct exposure to the absconding jewellery designer, according to a PTI report.
Nirav Modi and his companies obtained loans based on allegedly fraudulent guarantees issued by some of the employees of the branch, according to the first information report filed by the CBI. Investigations are on and the Enforcement Directorate has seized assets of both Modi and Mehul Choksi of Gitanjali Gems Ltd.
No Impact Of RBI Penalty
Axis Bank said in its statement that the Reserve Bank of India's Rs 3-crore penalty will not have any material impact on the lender. The central bank had imposed the penalty for violation of non-performing asset classification norms after carrying out a statutory inspection with reference to its financial position as on March 31, 2016.
Also Read: RBI Sets April 30 Deadline For Linking SWIFT With Core Banking
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