'PNB management should be kept out'

'PNB management should be kept out'

In the wake of the Punjab National Bank's Rs 11,400 crore credit fraud, the All Indian Bank Employees Association (AIBEA) on Monday demanded the government keep out the top management and higher officials of the bank until the probe is completed.

"Attempts are being made to dilute the magnitude of the fraud as a 'one bank-one branch- two employees' fraud," an AIBEA statement said.

The statement said such huge scams cannot be conducted in a simple way - where an official would give LoUs for Rs 11,400 crores in a period of 6 or 7 years without anyone knowing about it.

"No doubt there has been serious complicity of the branch official. But it is naïve to believe that no one else is involved in this racket. At least it cannot happened without the knowledge of Nirav Modi in whose favour these LoUs  were given,"  the statement said.  

The AIBEA said the fraud has raised a number of questions on technology issues, supervision, monitoring, audit and internal control, besides the role of the RBI in the whole episode.

"How is it that the RBI, which carries out regular audits of banks, didn't even smell the fraud, despite the number of years and the volume of money involved?" AIBEA general secretary C H Venkatachalam said.