Amid PNB fraud case; Union Bank admits exposure of Rs 1915 crores
Amid focus on state-owned Punjab National Bank in the case of Nirav Modi, Union Bank of India has come out saying it has exposure of around Rs 1,915 crore.
It need be mentioned that Union Bank of India stressed that its money is safe and the bank will recover it.
In a statement issued, “We wish to inform you that the bank through our foreign branches has been taking exposure with Punjab National Bank (PNB) as counterparty under various Letters of Undertakings (LoU) issued through authenticated SWIFT message,”.
The message was also conveyed to the stock exchanges.
The bank has also purchased some buyers credit assets from Axis Bank through Risk Participation as a part of normal International Business Practice, it said.
Union Bank of India shares dropped 2.37% to Rs 117.25, while the PNB stock fell over 3% to Rs124.45 on BSE.
On Thursday, fraud-hit PNB said it will honour its “bonafide commitments” and the entire liability will be known after the investigation.>