Gitanjali Gems to add up bank's NPAs by 8000 crores

Gitanjali Gems to add up bank's NPAs by 8000 crores
Gitanjali Gems to add up bank's NPAs by 8000 crores

New Delhi : Non-performing assets, also known as bad loans, in the banking sector are set to rise by Rs 8000 crores on the account of scam hit Gitanjali Gems group during the quarter end.

Banks will have to make provisioning of Rs 8000 crores for Gitanjali Gems alone as there has been no servicing of the working capital during the fourth quarter of last fiscal, souces quoted by a media report.

Gitanjali, among others, is the major account which has turned bad in the fourth quarter of 2017-18. 

Gitanjali Gems is promoted by Mehul Choksi, uncle of billionaire diamantaire Nirav Modi, who defrauded Punjab National BankNSE 0.05 % (PNB) of over Rs 13,000 crore by getting fake Letters of Undertaking/Credit (LoU/LoCs) issued from one of the bank's branches in Mumbai. 

A special CBI court has issued non-bailable warrant against Mehul Choksi and Nirav Modi in bank fraud case.