In a significant development for the Indian banking sector, a Belgian court has ruled in favor of extraditing Mehul Choksi, the fugitive diamantaire accused in the Rs 13,000 crore Punjab National Bank (PNB) scam, to India. This decision marks a crucial step in bringing accountability to one of India's largest banking frauds.

Key Points of the Ruling

• The Court of Appeals in Antwerp has upheld arrest warrants issued by a Mumbai special court.
• The court found no risk of unfair trial or ill-treatment for Choksi if extradited to India.
• This ruling paves the way for Choksi's potential return to face charges in India.

The PNB Scam: A Recap

Mehul Choksi, along with his nephew Nirav Modi, is accused of orchestrating a massive fraud against Punjab National Bank. The scam, valued at approximately Rs 13,000 crore, involved:

• Fraudulent letters of undertaking
• Collusion with bank officials at PNB's Brady House branch

Preparations for Choksi's Return

Indian authorities have made several assurances and preparations for Choksi's potential return:

• A specially prepared cell at Mumbai's Arthur Road Jail has been readied.
• The cell includes amenities such as TV, newspapers, and natural light.
• Videoconferencing facilities have been arranged for legal consultations.
• India has provided assurances to Belgian authorities regarding Choksi's safety, prison arrangements, and human rights.

Current Status and Background

• Choksi has been imprisoned in Antwerp since April.
• Multiple bail petitions have been rejected.
• He had previously fled to Antigua and Barbuda before the scam was detected.
• Choksi obtained citizenship in Antigua and Barbuda but remains an Indian citizen.

Implications for PNB

While the extradition ruling is a positive development for the case, it's important to note that Punjab National Bank continues to navigate the aftermath of this significant fraud. According to recent LODR data:

These figures suggest that PNB has been working to stabilize its financial position in the years following the scam. The potential extradition of Choksi could provide closure to this chapter and potentially aid in the recovery of funds.

The Belgian court's decision represents a significant milestone in India's efforts to address high-profile financial crimes. As the legal process unfolds, it will be crucial to monitor how this development impacts both the banking sector and India's international efforts to combat financial fraud.

Punjab National Bank (PNB) has reduced its stake in Canara HSBC Life Insurance Company Limited from 23% to 13% through an Offer for Sale (OFS) in the company's Initial Public Offering (IPO). This move marks a significant shift in PNB's investment portfolio and has implications for both the bank and the insurance sector.

Transaction Details

PNB executed the stake sale on October 17, 2025, divesting 9.5 crore shares at a price of Rs 106.00 per share. This transaction resulted in a cash consideration of Rs 1,007.00 crores for the bank. The details of the transaction are summarized in the table below:

Financial Performance of Canara HSBC Life Insurance

The LODR data provides insight into the financial performance of Canara HSBC Life Insurance for the fiscal year ending March 31, 2025:

These figures demonstrate the insurance company's financial position, with a positive net worth and profitable operations.

Transaction Implications

The stake sale through the IPO route indicates a strategic decision by PNB to monetize its investment while potentially allowing for broader public ownership in Canara HSBC Life Insurance. This move aligns with the trend of banks reducing their stakes in insurance joint ventures, possibly to comply with regulatory requirements or to focus on core banking operations.

It's important to note that this transaction does not constitute a related party transaction, as confirmed in the LODR disclosure. The buyers are public investors participating in the IPO, which suggests a diversification of the insurance company's ownership structure.

Conclusion

PNB's decision to reduce its stake in Canara HSBC Life Insurance through an IPO offers several potential benefits. It provides the bank with additional liquidity, which could be used to strengthen its balance sheet or fund other strategic initiatives. For Canara HSBC Life Insurance, the IPO may enhance its market presence and provide access to public market capital for future growth.

As the insurance sector in India continues to evolve, such strategic moves by major banks like Punjab National Bank could signal a shift in how financial institutions manage their stakes in insurance ventures, potentially leading to more dynamic insurance markets.