Financial services secretary Rajiv Kumar said similar action is likely to be taken by the board of Allahabad Bank against Ananthasubramanian.
Hours after the CBI filed the chargesheet against the fraudstars, the DFS (Department of Financial Services) has directed the directors of PNB and Allahabad Bank to divest all the powers of the officers, who are accused in the case.
Under instructions from the finance ministry to act on India's largest ever bank scam involving diamond merchants Nirav Modi and Mehul Choksi, the PNB board divested its executive directors K V Brahmaji Rao and Sanjiv Sharan of their financial and executive powers.
The agency has not given in detail the role of Mehul Choksi in the present charge sheet. "A supplementary chargesheet in this case will focus on the roles of overseas banks in the fraud", the CBI officer said. Vipul Ambani, CFO of Firestar International, the flagship of Nirav Modi's global business, was allegedly aware of the illegalities and kept all the related documents with him.
PNB has cleared dues of Rs 65.9 billion to foreign branches of Indian banks to which it had issued these LoUs.
He also said state-run PNB had begun the process of removing two executive directors, without naming the executives or saying why the three were being ousted.More news: Two dead in parachute light aircraft crash
Bankers said the chargesheets would act as a disincentive to officials taking decisions on fresh lending. After initially disputing its liability, PNB paid seven banks Rs6,500 crore towards these letters of understanding (LoUs).
The CBI today filed its first chargesheet in the country's largest financial scam worth over United States dollars 2 billion at PNB allegedly committed by billionaire jeweller Nirav Modi.
Both Norav Modi and Choksi had left the country before PNB filed the complaint with the CBI.
It is alleged that Modi and Choksi, in connivance with the then PNB deputy manager Gokulnath Shetty, transgressed banking procedures and fraudulently caused PNB "wrongful" loss. The fraud was allegedly perpetrated despite the circulars issued by RBI, which was in the knowledge of senior officials of PNB.
PNB shares ended down 3.8 percent, their lowest close since June 13, 2016, having fallen as much as 6.4 percent after the results. She was executive director at PNB from July 2011 to November 2013.
Senior officials of PNB did not implement the circulars and caution notices issued by Reserve Bank of India regarding safeguarding SWIFT operation through which messages were sent to overseas banks to issue loans to the companies of Nirav Modi, they said.