Mumbai:Â Axis Bank informed the stock exchanges on Thursday that the bank has sold down all the transactions which it had undertaken against the Letter of Undertakings (LoUs) issued by Punjab National Bank. These transactions were, however, undertaken against authenticated SWIFT LoUs, the bank assured.
â€śAxis Bank is an active participant in the secondary market for such transactions, and the bank has sold down all of the referred transactions,â€ť said the notice.
The private sector lender added that such transactions are undertaken as part of the normal course of trade business through its overseas branches. The amounts are typically credited to the LoU issuing bankâ€™s nostro accounts.
The clarification from Axis Bank comes a day after the PNB acknowledged that it has detected financial fraud amounting to over Rs11,000 crore in its Mumbai branch. The bank has accused jeweller Nirav Modi and the companies linked to him for acquiring LoUs to obtain loans from banks abroad.livemint