Punjab National Bank Chairman and Managing Director KR Kamath today said the bank will probe the money laundering accusations levelled by online news portal Cobrapost and accordingly take corrective action.
"We have looked at the transcript and we have asked for an investigation. We will see that if the investigation brings out any systematic issue, we will definitely take corrective action," Kamath told reporters while announcing bank's fourth quarter results for 2012-13.
Kamath, however, denied any wrongdoings on the part of this staff and said bank officials always follow the norms while opening new bank accounts.
"When we open an account, we need to get the proof of identity and a proof of address. In all the three cases people (bank staff) have insisted that(proof)...To that extent I don't think that there is anything wrong in whatever our people have said," he said.
He further clarified that "there has not been any money laundering that has happened in PNB. What we have laundered is only a dialogue, two people have spoken and that has been captured and said. So, no money is laundered, that we make this point very clear."
However, he said the tapes contained conversations about facilitating black money into white, so an investigation has already been ordered.
"Now how is it happening it is not very clear. But there has been a dialogue between two people. So, immediately we have ordered investigation into these three branches."
Kamath said the bank has a clear built-in-system to trail bulk deposits as well as tracks transactions involving any suspicious activity.
Cobrapost has accused a number of public and private sector banks as well as insurance companies of running a nation-wide money laundering racket in a series of expose that began in March.
The expose by Cobrapost has prompted the Finance Ministry and insurance sector regulator Irda to undertake independent probe into the matter.
