ICICI Bank has exposure to Gitanjali Group, not Nirav Modi firms; CBI questions bank’s executive director

Chanda Kochhar-led ICICI Bankhas informed that it has no exposure to Nirav Modi group of companies, but have given working capital loans along with a consortium to Gitanjali group. It has added that no LoUs have been issued to both the companies.

“We have not issued any Letter of Undertaking (LOU) nor do we have any buyer’s credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies,” it said in a statement on Tuesday.

The statement comes amid questioning of ICICI Bank’s Executive Director NS Kannan by the Central Bureau of Investigation (CBI) on Tuesday relating to the Punjab National Bank (PNB) scam worth Rs 12,700 crore.

ICICI Bank, which is the lead banker to Gitanjali Group loans said, “We are working capital lenders to the Gitanjali group of companies along with several other banks in the consortium.”

According to CBI officials, a loan totaling Rs 5,280 crore was given to the Gitanjali Group by a consortium of 31 lenders.

ICICI Bank, which is the country’s largest private lender, said its “exposure to the Gitanjali group of companies is not the largest among lenders in the consortium… We are fully co-operating with the investigating agencies in their efforts.”

ICICI Bank statement:

 

    1. We have no exposure to the Nirav Modi group of companies.

 

    1. We have not issued any Letter of Undertaking (LOU) nor do we have any buyer’s credit exposure against LOUs with respect to the Nirav Modi group of companies as well as the Gitanjali group of companies.

 

    1. We are working capital lenders to the Gitanjali group of companies along with several other banks in the consortium.

 

    1. Our exposure to the Gitanjali group of companies is not the largest among lenders in the consortium.

 

    1. We are fully co-operating with the investigating agencies in their efforts.

 

 

Apart from Kannan, two general managers of PNB and former Managing Director Usha Ananthasubramanian were also summoned and interrogated by the CBI.

The country is dealing with one of the biggest banking frauds worth Rs 11,400 crore that came to light on February 14, when PNB informed the stock exchanges of multiple LoUs issued fraudulently by two of its employees to two jewellery merchant firms since 2011. This contingent liability, PNB said late on Monday night could increase by Rs 1,330 crore.

Diamond kingpin Nirav Modi’s three firms and his uncle Mehul Chokshi’s Gitanjali Group allegedly used these LoUs to seek loans from foreign bank branches of Indian banks and a foreign lender.

List of lenders to Gitanjali Group

 

    • PNB: Rs 587 crore

 

    • ICICI Bank: Rs 405 crore

 

    • Corporation Bank: Rs 297 crore

 

    • Bank of Baroda: Rs 265 crore

 

    • Central Bank of India: Rs 206 crore

 

    • Syndicate Bank: Rs 231 crore

 

    • Canara Bank: Rs 195 crore

 

    • Indian Overseas Bank: Rs 176 crore

 

    • Bank of India: Rs 173 crore

 

    • State Bank of Hyderabad (now merged with SBI): Rs 140 crore

 

    • Dena Bank: Rs 121 crore

 

    • J&K Bank: Rs 121 crore

 

    • Oriental Bank of Commerce: Rs 121 crore

 

    • Union Bank of India: Rs 121 crore

 

    • Exim Bank: Rs 109 crore

 

    • IDBI Bank: Rs 99 crore

 

    • Karnataka Bank: Rs 87 crore

 

    • State Bank of Bikaner & Jaipur (now merged with SBI): Rs 87 crore

 

    • SBI: Rs 52 crore

 

    • Vijaya Bank: Rs 63 crore

 

    • IndusInd Bank: Rs 58 crore

 

    • Karur Vysya Bank: Rs 30 crore

 

    • Lakshmi Vilas Bank: Rs 30 crore

 

    • Bank of Maharashtra: Rs 24 crore

 

    • Allahabad Bank: Rs 419 crore

 

    • Andhra Bank: Rs 240 crore

 

    • United Bank: Rs 207 crore

 

    • Standard Chartered Bank: Rs 100 crore

 

    • SBM Bank Mauritius Limited: Rs 75 crore

 

    • Catholic Syrian Bank: Rs 50 crore

 

  • Punjab and Sind Bank: Rs 29 crore
  • moneycontrol