PNB starts Mission Parivartan to curb repeat of another Nirav Modi scam

TIL Desk/Business/New Delhi/ Hit hard by the Rs 130 billion scam, PNB has decided to tighten loan disbursement and set up a monitoring mechanism to check loan slippages and fraud. Some of the ideas being considered include having a separate pre-sanction appraisal and post sanction monitoring teams for credit disbursal to ensure better governance and transparency, official sources said.

A new monitoring group will be set up to keep track of whether cash flow from projects is being used to repay bank loans and that there are no slippages, sources said, adding that a separate vertical to be created for stressed asset recovery. This will be tried out as a pilot in some branches before a roll out nationally in the next 6 months, the sources said.

These changes are being made as part of Mission Parivartan drive which the bank has embarked on earlier this week. In a bid to improver customer convenience, sources said, automating customer response mechanism is to be implemented soon so as to ensure timely intervention and evaluate performance on timely resolution of customer disputes and complaints across branches.

Billionaire jeweller designer Modi and his uncle Mehul Choksi in connivance with certain bank officials allegedly cheated the PNB of Rs 129.68 billion through fraudulent Letters of Undertaking (LoUs).