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This is part two of a series on the RBI’s risk assessment reports for Punjab National Bank. Read part one here on the red flags the regulator failed to waive one year before the scandal broke.
New Delhi: If the Reserve Bank of India (RBI) felt all was relatively well at Punjab National Bank (PNB) a year before the Nirav Modi scandal was discovered, its assessment of the state-run lender just a year later indicates that almost nothing was right.
The central bank’s confidential annual inspection report for PNB in FY’18, obtained by The Wire through a right to information (RTI) request, takes a dim view of various aspects of the state-run lender’s functioning.
The report includes adverse remarks on a number of key areas including red-flagging of accounts, reporting of frauds, general classification of NPAs (non-performing assets), collateral management, internal auditing and market risk management.
In particular, the RBI notes that the Nirav Modi…
