"We have an exposure of around Rs 2,000 crore in the fraud detected by PNB two days back," a source in Allahabad Bank told PTI.
PNB has said that group companies of Nirav Modi and his relative Mehul Chokshi's Gitanjali Gems in collusion with two of their officials from its Brady House Mumbai branch, were fraudulently receiving LoUs since 2011.
Foreign branches of a few Indian banks gave credit against these LoUs to Nirav Modi's companies to repay overseas suppliers.
The bank has already filed for claims, the source said.
Other banks which were involved in giving credit based on LoUs issued by PNB were Axis Bank, Union Bank and SBI.
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