The source further said Thomas has also confessed that most of the board members were in the dark about these loans. Before he exited the HDIL board, Singh had sold his entire stake in the company. "Thomas in the letter admitted that the exposure to HDIL Group was over ₹6,500 crore, which is nearly 73 per cent of its total loan book of ₹8,880 crore as of September 19, 2019," the source said. Thus, PMC's exposure to HDIL is almost four-times of what RBI mandates. During the inspection, RBI found major financial irregularities, under-reporting of exposure and failure of internal controls and systems.

Source: Mint September 29, 2019 12:45 UTC