India's fraud-hit PNB looking to monetise assets: source

Gitanjali Gems

16/02/2018 11:18

NEW DELHI, Feb 16 (Reuters) - India's fraud-hit Punjab 
National Bank  PNBK.NS  is considering monetising its real 
estate assets, including a giant office space in New Delhi worth 
an estimated 50 billion rupees ($778.63 million), a bank source 
with direct knowledge of the matter told Reuters. 
    The bank was looking to expedite the process after it said 
this week it has been hit with a $1.77 billion loan fraud, the 
biggest bank scam in the country's history. 
    The bank would look to sell assets through a tendering 
process. "We are in talks with interested parties," said the 
source, who declined to be identified due to the sensitivity of 
the matter.  
     Indian investigators raided the offices of jewellery 
retailer Gitanjali on Friday in a widening probe into the fraud. 
    The case is centered around diamond billionaire Nirav Modi 
who is accused of colluding with bank employees to fraudulently 
obtain advances for payments to overseas suppliers to his 
business stretching from New York to London to 
Beijing. urn:newsml:reuters.com:*:nL4N1Q60QN 
    Morgan Stanley estimated on Thursday if PNB had to assume 
all the liability from the fraud it would need 80 billion rupees 
($1.25 billion) in additional capital, which at the stock's 
current valuation would mean a 14 percent dilution. 
     
     
 
 (Reporting by Krishna Das; Editing by Sanjeev Miiglani) 
 
Keywords: PUNJAB NATL BANK FRAUD/ASSETS