‘JK Bank has no direct exposure to Nirav Modi Group’

Srinagar: Jammu Kashmir Bank on Thursday clarified that it has no direct exposure to the Nirav Modi Group companies and was not affected by any fraudulent Letters of Undertaking (LoU) issued by the Punjab National Bank.

Downplaying the media reports, J&K Bank official spokesperson today clarified that the Bank had no direct exposure to the Nirav Modi Group companies.

“JK Bank  was having a business account of M/S Gitanjali Gems in its Fort Business Unit since 2012 wherein the bank had sanctioned a working capital loan of Rs 121 Cr under a consortium arrangement of 31 Banks led by ICICI Bank.   J & K Bank’s share in the total loan facilities of Rs 5198 Cr by the consortium was 2.33%.” the spokesperson said.

In the wake of recent developments of the company with PNB, the consortium recently discussed and agreed that Banks may individually decide to recall the facilities and may also freeze all the accounts except for allowing few mandatory/statutory payments.

Acting swiftly JK Bank has already initiated freeze on all debits in the account of Gitanjali Gems Limited and issued recall notice to the company which will be followed by legal action.

The spokesperson of the bank categorized any other information regarding the matter in some sections of media as factually incorrect.  

Notably the bank had during its clean up and consolidation drive year and a half ago reckoned the account as a stressed account and consciously avoided additional exposure in the company.



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