PNB Fraud Story - 11400 cr Scam by Nirav Modi

In 2011, when a letter of undertaking (LOU) was opened at the Fountain branch of PNB in Mumbai by the alleged fraudster

**What is LOU**
A bank guarantee. The bank opening an LOU for a client agrees to unconditionally repay the principal and interest on client's loan. The client could be an importer who uses funds or credit limit with an Indian bank to get cheaper foreign currency loans

**FACTS***
- Government was expected to infuse Rs5,473cr in PNB equity 
- The fraud is 8 times the bank's 2016-17 profit of is 1325cr 
- It is equal to a PNB share third of PNB's network (35,300cr)

******
Image credit - Umeed Sinha
Video Editor - Aman Bhatia
Teacher - Ramandeep Singh
******

[zee]

So far the bestest explanation on this very case.

[yashgala]

Thank you sir Awesome explanation of these Case 👍👍👍

[anuragabhishek]

Sir, Really you have explained it nicely and clearly my concept got cleared regarding LOU and other things. Sir, I am fan of Your Teaching, in my life till this day i have not seen any teacher teaching like you, hates up to you Sir..

[poojapal]

Sir u explained each part of scam so simply..thanks for awesome explanation ..

[ajinkyatifanbane]

Explaination at its easiest!! Sir Thank you for this video!!

[hey_rashi]

Thank you so much for clearing my concepts. :)

[shivamtiwari]

Thank you so much Sir for the insightful lecture ^_^

[echoes]

For the issuance of such big ticket LOU's are there no systematic procedures to be followed other than the said authentication mechanism ?

[maulivsul]

Thank u sir 😉 it was a very good explanation 👌

[aakarshsharma]

Sir there is a problem in your app ... We are unable to access the full page we have to download PDF of every topic ... And learning through PDF is bit hard ...

[aniruddhachakraborty]

Will there be no legal action taken against Nirav Modi??

[ayushraj]

Indian gov should make a strong law for froad.

[vmeshach]

Good explqnation and its '6'400 cr sir :)

[LSVarma-nquy]

Hai bro..thanks for your explanation.Please also explain FRDI effect on common man.