New twist to Rs 6,000-crore black money remittance scam! BoB gave Apple iPhones to top officials

For the first time in the history of 107-year-old state-owned Bank of Baroda (BoB), iPhones were distributed to senior management officials and board directors, according to bank officials.

The approximate cost of each of the 60 iPhones with 64GB storage facility that the bank gave out was Rs 60,000.

The lender is involved in an alleged Rs 6,000-crore black money remittance scam and the case might be probed now from a new angle. The Enforcement Directorate (ED) and CBI have been investigating the case and arrested many bank officials over the alleged scam.

When the bank was asked to comment about it, it told ET that the expenses towards distributing the iPhones "have been reflected under the head 'sundry charges' in the P&L statement."

It also said technology is a key factor in financial servicing industry and smartphones are enablers for such transactions in the digital space, so smartphones were offered to the top management. The scheme was meant for employees at the level of general manager and above.

Meanwhile, the state-run lender registered over 20% drop in net profit to Rs 1,052 crore in the April-June quarter. Staff expenses rose 22% to Rs 1,345 crore as the bank paid arrears for a salary revision.

The Central Bureau of Investigation (CBI) has noted that most of the foreign exchange related transactions were carried out via newly opened current accounts. The branches concerned did not generate exceptional transaction reports and did not monitor high-value transactions in these accounts.

The CBI had arrested a branch assistant general manager and its foreign exchange officer, while the ED has arrested four people, including an HDFC bank employee, in connection with the alleged scam.

(Image: Indiatimes)