In 2018, it was found that PNB was defrauded of more than 13,000 crore rupees by Nirav Modi and Mehul Choks
Mumbai:
Punjab National Bank (PNB), India’s second largest lender, bought three Audi cars for its senior management at a time when the financial sector is in a tight spot, looking for ways to conserve capital.
According to sources, PNB received these high-end luxury cars worth around Rs 1.34 crore last month, regardless of the coronavirus epidemic, the ensuing national foreclosure and its effect. crippling on the financial sector as well as on the economy.
The annual depreciation of this purchase will be around 20 lakh rupees, according to sources.
These luxury cars, sources said, will be used by the general manager (MD) and two general managers.
In addition to the MD, there are four executive directors given the size and breadth of the bank’s operations.
These cars were purchased after board approval and within the limit allowed for full-time directors, sources said, adding that this is part of the routine replacement and last year’s unused budget was postponed for purchase.
Interestingly, Union government secretaries and cabinet ministers use Maruti Suzuki Ciaz, much cheaper than German luxury car maker Audi.
In principle, the managing director of a public sector bank is equivalent to an additional secretary in the central administration.
Even the president of the country’s largest lending bank, State Bank of India, who is considered a cut above the managing director of a nationalized bank, uses Toyota Corolla Altis when he is in the capital.
In the wake of the coronavirus crisis, the Ministry of Finance last week asked all ministries and departments not to introduce any new measures during the current financial year and stressed the need for prudent use of resources in these difficult times.
The National Bank of Punjab was the victim of a fraud of more than 13,000 crore rupees by Nirav Modi and Mehul Choksi – a scam discovered in 2018.
