Allahabad Bank has ₹2,363-cr exposure to fraud

Kolkata/Mumbai, February 16

Kolkata-based Allahabad Bank has said it has an exposure of $366.87 million (approximately ₹2,363 crore) in the PNB fraud case.

The bank, however, stressed that it was confident of receiving the payment as the exposure was fully secured by LoU documents.

“The bank, through our overseas branch at Hong Kong, has been taking exposure with Punjab National Bank as counter-party under various Letters of Undertakings issued through authenticated SWIFT message,” Allahabad Bank said in a regulatory filing to the BSE on Friday. The bank has also purchased some buyers’ credit assets from Axis Bank extended against PNB LoUs through risk participation.

No exposure for YES Bank

YES Bank on Friday clarified that it has no exposure to the entities that were associated with a $1.77 billion fraud at Punjab National Bank.

“YES Bank would like to confirm that it has nil exposure to the entities or affiliates mentioned in the media reports on the subject-specific fraud in the gems and jewellery sector,” the bank said in a regulatory filing.

Published on February 16, 2018

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