Rip­ples may hit many other banks

The Times of India (New Delhi edition) - - FRONT PAGE -

Dozens of banks are be­lieved to have pro­vided loans against the LOUs. With no as­sur­ance from PNB that it will hon­our the fraud­u­lent guar­an­tees, and its let­ter to banks that the LOUs are fraud­u­lent be­ing seen as an indi­ca­tor that it is try­ing to deny li­a­bil­ity, banks could find them­selves stuck for pay­ment. Bankers fear a le­gal stale­mate, with some al­ready say­ing RBI may have to in­ter­vene.

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