NEW DELHI: After instruction from the Finance Ministry, Punjab National Bank on Wednesday decided to clear all other banks’ dues and settle LoUs worth Rs 6500 crore with seven banks before March 31.
“The Board of the Punjab National Bank, in a meeting held on Wednesday, March 28, 2018 has approved payment related to Letters of Undertaking (LoUs) and Foreign Letters of Credit (FLCs) issued by the bank which mature on or before March 31, 2018,” PNB said in a statement.
The decision came after the Finance Ministry’s meeting on Tuesday with a few bankers, including those from Punjab National Bank, on the fraud related to fake letters of undertaking issued for group companies of Nirav Modi and Mehul Choksi.
“The bank will also honour all subsequent maturing LoUs and FLCs as and when they are due,” PNB said.