State-run PNB has detected the scam in which billionaire diamond merchant Nirav Modi allegedly acquired fraudulent letters of undertaking (LoUs) from a branch in Mumbai to secure overseas credit from other Indian lenders.
"Nirav Modi's case showed how much the country's banking system failed to detect the fraud early... Fresh thoughts are required to revive the banking sector," Roy said here on the sidelines of a CII-organised event.
He said that lending to the infrastructure sector could be impacted in view of the Rs 11,400 crore fraud.
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