The CBI in that charge sheet said Usha Ananthasubramaniam did not act to uncover the fraud in spite of warnings from the Reserve Bank of India.
The lender also said that it paid Rs 6,586.11 crore to other banks to discharge its liabilities related to Letter of Undertakings (LoUs) and Foreign Letter of Credits (FLCs) issued in the unauthorized manner to favor some overseas branches of Indian banks through the fraudulent use of SWIFT system of the bank, which was not integrated with CBS (core banking solutions).
Police on Monday charged 22 people, including a former head of PNB and two of its current executive directors.
Read also: Allahabad CEO named in PNB fraud The CBI has also chargesheeted employees of Gitanjali Group's sub-companies, who were either signatory authorities in the companies and knew about the fake LOUs or had helped Choksi form companies outside India.
Mumbai (Maharashtra) [India], May 16: The Central Bureau of Investigation (CBI) on Wednesday filed the second chargesheet in connection with the Punjab National Bank (PNB) fraud case and named main accused Nirav Modi's uncle Mehul Choksi as "wanted".
PNB reports Rs. 13416.91 Cr. loss in Q4
Looking at the bank's Q4 earnings, financial services company Jeferries said in a report that "the need for a bailout by the government is immediate".
PNB, which raised 50 billion rupees from a share sale in December and has received almost 55 billion rupees from the government as part of a $32 billion bank recapitalisation programme, has said it is adequately capitalised for now.
Total hit to PNB on account of the Nirav Modi-scam is Rs 14,356.84 crore. "Q4FY18 loss of Rs 13,400 crore and FY19 loss estimate of Rs 8,000 crore could lead to a spiral of capital-raising at low multiples", the global brokerage house said. Ananthasubramanian was earlier with PNB.
The state-owned bank had reported standalone profit of Rs 261.90 crore in the fourth quarter of the preceding fiscal 2016-17. "Mr. Shetty obtained quotes by Debajyoti Dutta, proprietor of Rishika Financials for Mr. Choksi's companies for the issuance of LoU by PNB out of which Mr. Shetty compelled Mr. Dutta to part with an aggregate sum of ₹1,02,53,664 as illegal gratification by way of cheques for himself and his family by threatening Mr. Dutta of stopping his business".