SBI says no to Nirav Modi but Rs 1,360 cr exposure to PNB
Published: Feb 16, 2018
By TIOLCORPLAWS News Service
Kochi, FEB 16, 2018: The country's largest lender, SBI, said on Friday it has an exposure of $212 million (about Rs 1,360 cr) with respect to letters of undertaking (LoU) issued by PNB to Nirav Modi, but does not have any direct exposure to the absconding jewellery designer.
“We don't have any direct exposure on Nirav Modi, but we do have some exposure on Punjab National Bank,” SBI chairman, Rajnish Kumar, said on Friday.
He said the bank has lent $212 million to Modi on the basis of an LoU issued by PNB. He also said the bank has some exposure to Gitanjali Gems, owned by Mehul Choksi, uncle of Nirav Modi.
When asked about the lender's exposure to the entire gems and jewellery sector, he said it is less than 1% of the total domestic loan book.