NEW DELHI: Rs 11,400 crore scam held by state-owned Punjab National Bank (PNB) has cautioned all banks about this kind of Fraud.

"It has been reported through a preliminary investigation that the suspected fraud has been carried out by the perpetrators in collusion with the staff of one of our branches in Mumbai," PNB said in an issued letter sent to different banks, together with those from the private and public sector and also to foreign lenders.

The letter said it was brought into being through the SWIFT trail that one low-ranking level official unauthorisedly and deceitfully issued Letters of Undertaking (LoUs) on behalf of some companies possessing to Nirav Modi Group.

These companies were keeping up only current accounts with the branch and none of the transactions were in retreat through the Centralized Banking System, it further said.

The parallel manner of operating was practiced by the same official for companies belonging to Gitanjali Gems which is promoted by Mehul Choksi.

PNB said that RBI norms were ignored by overseas branches of other Indian banks and alleged participation of group companies of Nirav Modi and Gitanjali Gems with its own official and also actually of others working in foreign branches of Indian banks.

The deceitful operate was found out when following to superannuation of the apprehensive official, the same companies for a second time moved the branch for receiving Letter of Undertakings (LoUs).