Debt-Ridden PNB Buys Audi Cars Worth Rs 1.3 Crore For Three Officials!
After Nirav Modi scammed PNB, and fled India with Rs 14,000 crore, financial positon of the bank has been in doldrums.
But notwithstanding these debts, and scams, Punjab National Bank has bought Audi’s ultra-luxurious cars for their three top management officials.
Despite the coronavirus impact, lockdown, and the frauds, how did this happen?
PNB Buys Audi Cars Worth Rs 1.34 Crore For Their Management
Three Audi cars, worth Rs 1.34 crore, has been bought by Punjab National Bank for three of their top officials: One will be used by their Managing Director, and the other two by their two senior executive directors.
These cars will have a depreciating value of Rs 20 lakh next year onwards.
To be fair with PNB, these luxurious cars from Audi were bought last month, after their Board approved it. But the timing is crucial: These Audi cars were bought when coronavirus epidemic was in their full vigor, and nation was in lockdown.
Isn’t this highly irresponsible action by the PNB board?
PNB Management Uses Expensive Car Despite Financial Turnmoil
Interestingly, secretaries in the Union government and even Cabinet ministers are using a much cheaper Maruti Suzuki Ciaz car, but the PNB senior management have decided to go with the expensive Audi cars worth Rs 1.34 crore.
Now, the stature are same: A managing director of a PSU bank is on the same level as that of an additional secretary in the central government.
A small comparison: Even the Chairman of State Bank of India drives a humble Toyota Corolla Altis when in Delhi!
Debts And Losses Incurred By PNB
- In this quarter, PNB announced bad loans of Rs 4,445.36 crore, which is more than double of the bad loans provisioned last year
- For the quarter ending January, 2020, PNB declared net loss of Rs 501 crore, due to the increase in the provisioning of bad loans. The bank had declared net profit of Rs 249 crore, same period last year
- The bank has still not recovered any money from Nirav Modi, who robbed PNB of Rs 14,000 crore.
There has been no reaction from the bank on this development.
We will keep you updated, as more details come in.